Hong Kong Treasury Bureau: Expects to Issue Some Stablecoin Licenses Early Next Year, Prioritizing Anti-Money Laundering Measures

The People's Bank of China stated last month that stablecoins pose risks for illegal activities, and the market is concerned about whether this will affect the direction of stablecoin implementation in Hong Kong. In response, Hong Kong's Financial Secretary Paul Chan stated on Friday (December 19) that as of the end of September this year, they have received 36 stablecoin license applications from various industries. They plan to issue some licenses early next year, prioritizing sound reserve management, price stability, and anti-money laundering measures. He believes that these measures not only protect investors but also reduce potential conflicts in trading through establishing clear compliance pathways, which helps to resolve potential disputes. Regarding the progress of the licensing system for virtual asset trading and custody service providers, Paul Chan mentioned that they are working with the Hong Kong Securities and Futures Commission to develop detailed content for the issuance system. They plan to submit it to the Legislative Council for review next year, and the regulatory framework will cover key aspects of the virtual asset industry, striving to achieve a balance between risk management and innovation. He reiterated that the Hong Kong government has meticulously crafted various policy measures, coordinating standards for Web 3.0 and Digital Assets to safeguard investor rights, ensure regulatory clarity and transparency, and promote international alignment to create an environment that promotes innovation without compromising stability. It is reported that the Hong Kong Stablecoin Ordinance took effect in August this year. A spokesperson for the Hong Kong Monetary Authority stated in October that they will review the application materials and approve them in accordance with the Stablecoin Ordinance and relevant regulatory requirements. The licensing application has a high threshold, and only a few licenses will be issued in the initial stage.