With the Stablecoin Ordinance in effect, Hong Kong has entered a compliance era, leading to a surge in licensing applications from various sectors.
Hong Kong has officially entered a stablecoin compliance era as new regulations took effect on August 1. The licensing regime for fiat-referenced stablecoin issuers has prompted high interest, with dozens of firms already engaging with the Hong Kong Monetary Authority. This development indicates significant activity across various sectors, including finance and technology, as firms explore compliance and operational scenarios. Compliance with anti-money laundering standards and risk management protocols is mandated, while only licensed institutions may sell fiat-referenced stablecoins, potentially concentrating the market among major issuers.