Financial authorities in Hong Kong are looking to issue licences for issuers of stablecoins in 2026 – not this year.
The Hong Kong Monetary Authority (HKMA) told a media briefing on Tuesday the city’s stablecoin bill is set to take effect on Friday – August 1. And, the first batch of Hong Kong stablecoin issuer licences could be granted in early 2026.
The market had expected that the first batch of issuer licences might be issued this year, but Tuesday’s comments showed the city’s de facto central bank is taking a cautious stance.
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Darryl Chan, deputy chief executive of HKMA, emphasized that only “a handful” of licences will be granted for the first batch.
Investors have piled into crypto-related stocks in Hong Kong since the city passed a stablecoin bill in May to boost its status as a global digital asset hub.
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HKMA has been actively flagging risks around the growing frothiness of the market around stablecoins recently.
In a statement on Tuesday, HKMA reminded market participants “to exercise due caution in their public communications, as well as refrain from making statements that could be misinterpreted or create unrealistic expectations.”
It said that no stablecoin licence has been issued by the HKMA as of Tuesday.
HKMA suggested that interested institutions should apply for a licence before August 31 to receive feedback from the regulator.
Institutions that have so far spoken with the HKMA are mostly exploring stablecoins pegged to the Hong Kong dollar or the US dollar, Chan said.
He added that stablecoins backed by offshore yuan will still need to clearly specify cases for their use and the assets used as reserves.
- Reuters with additional editing by Jim Pollard
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