Hong Kong Postpones Stablecoin Licensing Until 2025 Amid Strict Regulatory Changes

Hong Kong Delays Stablecoin Licensing As New Crypto Rules Take Effect

Hong Kong has announced a strategic delay in issuing stablecoin licenses until at least 2025, following the release of comprehensive crypto regulatory measures that will come into force on August 1. This cautious move, confirmed by the Hong Kong Monetary Authority (HKMA) on July 29, highlights the city's intention to balance innovation in digital assets with robust oversight, amid the fast-evolving landscape of blockchain and cryptocurrency regulations.

New Compliance Requirements for Stablecoin Issuers

The newly finalized framework introduces a rigorous set of requirements for stablecoin issuers. All prospective licensees must comply with enhanced anti-money laundering (AML) standards and demonstrate full reserve transparency. The HKMA has outlined two foundational guidelines: the first establishes minimum capital and operational benchmarks for licensed companies, while the second enforces strict AML controls and details the transition process for existing issuers into the updated regulatory environment.

Phased Licensing Process and Tight Timelines

Although the new regulations become enforceable next month, the HKMA clarified that it will not issue any stablecoin licenses in 2024 due to the "heavy workload" involved in processing applications. Deputy CEO Darryl Chan Wai-man emphasized that approvals may only be granted to a select few in early 2025, underscoring the depth of scrutiny applicants will face. To move forward, companies must declare their initial intent to apply by August 31, and formal applications are due by September 30 for consideration in the first review batch. Violations of these crypto asset regulations could result in penalties under Hong Kong's Stablecoins Ordinance.

Hong Kong's Deliberate Approach Compared to US Fast-Tracking

Hong Kong's careful and selective licensing process marks a sharp contrast to the accelerated stablecoin regulatory approach recently adopted in the United States. Under the new GENIUS Act signed by President Trump, US stablecoin issuers are required to hold 100% reserve backing, submit monthly transparency reports, and adhere to federal anti-money laundering supervision. The US government is prioritizing quick approval timelines and broad market access in an effort to strengthen dollar dominance in digital finance.

Strategic Priorities and Global Crypto Impact

The differing approaches reflect each jurisdiction’s strategic priorities. Hong Kong is placing stability and consumer protection at the forefront, focusing on rigorous audits and safeguarding against misleading claims regarding licensing. Meanwhile, the US is seeking rapid market expansion and global influence. Despite their differences in speed and scope, both frameworks reinforce consumer trust and integrity as essential pillars for mainstream adoption of stablecoins and blockchain-based assets worldwide.