Hong Kong to initially grant ‘very few’ stablecoin licenses starting in March

Hong Kong's financial watchdog, the Hong Kong Monetary Authority (HKMA), will begin granting stablecoin issuer licenses in March, according to HKMA Chief Executive Eddie Yue Wai-man. However, Yue specified that only a "very small number" of licenses would be approved initially. The review process for applications is nearing completion, with approval criteria focusing on risk management, anti-money laundering measures, and the backing assets of the stablecoins. Licensed issuers will also need to comply with local regulations for cross-border activities, with potential future mutual recognition agreements with other jurisdictions being explored. Stablecoins, which are pegged to fiat currencies, are a rapidly growing asset class, with projections suggesting significant future market expansion.

(Source：CoinDesk)