Futu Securities and OSL Group Reportedly Seek Hong Kong Stablecoin Licenses

Hong Kong Financial Secretary Paul Chan says the city plans to issue only a limited number of initial stablecoin licenses, underscoring a cautious rollout focused on practical use cases and risk controls.

Summary

Futu Securities and OSL Group were previously reported by Caixin to be seeking Hong Kong’s second batch of compliant stablecoin licenses. A new update adds that Financial Secretary Paul Chan said on April 13 that Hong Kong will grant only a small number of initial stablecoin licenses under a gradual regulatory approach. Chan said applicants must demonstrate real use cases, while authorities seek to balance innovation with anti-money laundering requirements and broader market risk controls.

Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency or other reference asset.
  • Compliant stablecoin license: A regulatory authorization for issuing or operating stablecoin-related services in line with local legal and supervisory requirements.
  • AML: Short for anti-money laundering, a set of rules and controls intended to prevent financial systems from being used for illicit funds.