Hong Kong misses March target for first stablecoin licenses

Earlier this year, Hong Kong regulators signaled that its first batch of stablecoin licenses would be issued before the end of the first quarter. But as March turns to April, the approvals have yet to materialize.

According to local news source Caixin, the Hong Kong Monetary Authority (HKMA) is continuing to process and review the applications and will provide updates as they come, but stopped short of offering an updated timeline.

The delays reportedly stem from regulators pushing prospective issuers to refine key parts of their applications, including reserve asset disclosures, anti-money laundering controls, redemption mechanisms, and how they would perform under extreme stress scenarios.

The HKMA has said it received 36 applications under the regime, which took effect in August 2025 and requires any firm issuing stablecoins in Hong Kong to first obtain a license.

Banks expected in first wave

Expectations for the initial approvals centered on the region’s top banks, particularly HSBC and Standard Chartered, which were rumored to be top candidates for the first batch of issuance.

A joint venture backed by Standard Chartered, Animoca Brands, and HKT was among the first to signal intent to apply when the framework came into force.

The Caixin report also stated that a second wave of applicants is already in motion, with firms such as Futu Securities and OSL Group — the first officially licensed Hong Kong crypto exchange — seen as strong contenders for later rounds.

Caution over speed

The delayed rollout, while likely frustrating for those applying for licenses, is on par with Hong Kong’s historical approach to crypto and digital asset regulations.

Only twelve crypto exchange licenses have been issued since the licensure regime launched in 2020, with approvals coming in waves rather than all at once. Just one platform has been licensed so far in 2026.

Its caution has been at least partly shaped by past enforcement episodes, including the fallout from the JPEX case in 2023, which drew more than 1,600 user complaints involving HK$1.19 billion (roughly $150 million) in assets.