TechFlow news, December 19 — According to the Hong Kong Economic Times, Financial Secretary Paul Chan said Friday (19th) while attending an event that as of the end of September this year, 36 stablecoin license applications had been received from various industries. Licenses are expected to be issued in early next year, with priority given to robust reserve management, price stability, and anti-money laundering measures.
He noted that these measures not only protect investors but also reduce ambiguity that could lead to transactional disputes by establishing clear compliance pathways, thus helping resolve potential conflicts.
Hong Kong's Stablecoin Ordinance took effect in August this year. In October, a spokesperson for the Hong Kong Monetary Authority stated that the authority would review application materials and approve them according to the Stablecoin Ordinance and relevant regulatory requirements. The licensing process sets high entry barriers, and only a few licenses will be granted in the initial phase.
Regarding progress on the licensing regime for virtual asset trading and custody service providers, Paul Chan indicated that discussions are ongoing with the Securities and Futures Commission to finalize details of the licensing framework, with plans to submit it to the Legislative Council for review next year. He emphasized that the regulatory framework will cover key segments of the virtual asset industry, aiming to strike a balance between risk management and innovation.
He reiterated that the government has "carefully designed" its policy measures to coordinate standards for the third-generation internet (Web 3.0) and digital assets, safeguarding investor rights, ensuring regulatory clarity and transparency, and promoting international alignment—creating an environment conducive to innovation without compromising stability.
Earlier reports noted that last month, the People's Bank of China stated stablecoins carry risks of being used for illegal activities, raising market concerns over whether this might affect Hong Kong's direction in promoting stablecoins.
