40+ firms race for Hong Kong stablecoin licenses as the city prepares to launch its new stablecoin regime on August 1. We’ve already examined how similar regulations, such as the Genius Act, are being actively pushed in the U.S., along with their more and less obvious similarities and differences. However, applications have already been submitted to the HKMA by a range of companies – from major Chinese banks to fintech and Web3 players – and it appears Hong Kong may be on track to outpace the U.S.
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More on the Rapid Development of the Hong Kong Stablecoin Regime
With the Hong Kong stablecoin regime set to take effect on August 1, the race for licenses is already underway. Among the 40+ firms that have submitted applications are JD.com, Ant Group, Douyin (a ByteDance subsidiary), as well as several payment infrastructure providers and internet platforms.
What’s driving the competition? The HKMA plans to issue only a limited number of licenses in the near term and has previously stated that it will prioritize a “small number” of participants that meet strict requirements.
- a fully backed reserve mechanism
- regular audits
- the ability to report asset structure
- a clear issuance model
Additionally, “companies without BIS-level assets will not be admitted,” effectively excluding unregulated platforms that cannot meet international standards for payment stability. So far, only three organizations have been admitted to the sandbox phase, including the joint venture between Standard Chartered and Animoca Brands.
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Something Big Is Coming
The crypto sector in Hong Kong is about to see an unprecedented wave of activity, and the earlier rollout of this regulatory regime compared to the U.S. may give Hong Kong a significant head start. We’ll be watching closely to see how this shapes the crypto landscape in Hong Kong – and likely across the broader Asia region.
