Hong Kong Misses March Target for First Stablecoin Licenses as HKMA Continues Review

The Hong Kong Monetary Authority (HKMA) did not issue its anticipated first batch of stablecoin licenses by the end of March 2026, missing the target timeline previously signaled by officials, with the regulator stating only that the licensing process is advancing and further details will be announced in due course.

The public register maintained by the HKMA showed no licensed stablecoin issuers as of April 2, 2026, as regulators reportedly push applicants to refine key aspects of their applications including reserve asset disclosures, anti-money laundering controls, and redemption mechanisms.

HKMA Delays Licenses as Regulators Focus on Application Details

The March timetable for stablecoin licenses had been set out earlier by HKMA Chief Executive Eddie Yue, who reportedly told lawmakers in February that only a very small number of issuers would be approved initially, with reviews focusing on use cases, risk management, anti-money laundering controls, and backing assets. According to local news source Caixin, the delays stem from regulators pushing prospective issuers to refine key parts of their applications, including how they would perform under extreme stress scenarios.

The HKMA received 36 applications under the stablecoin regime, which took effect in August 2025 and requires any firm issuing stablecoins in Hong Kong to first obtain a license. A spokesperson for the HKMA told Cointelegraph that the authority is “actively taking forward the licensing matter and will announce further details in due course,” without offering a revised timetable.

Hong Kong’s stablecoin framework requires issuers to fully back tokens with high-quality liquid reserves, process redemptions within one business day, and maintain a physical presence in Hong Kong, alongside broader Know Your Customer and transaction monitoring controls. The strict regime reflects the city’s cautious approach to digital asset regulation.

Major Banks Expected in First Wave as Second-Tier Applicants Prepare

Global banking giants HSBC and a joint venture backed by Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT) were widely reported as frontrunners for the initial approvals. The Standard Chartered-backed venture was among the first to signal intent to apply when the framework came into force.

According to Caixin, 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. The report indicated that expectations for major banks to anchor the first wave remain intact despite the absence of an updated timeline.

The delayed rollout aligns 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.

Hong Kong’s Cautious Approach Shaped by Past Enforcement Actions

Hong Kong’s caution in issuing stablecoin licenses has been influenced 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 (approximately $150 million) in assets. The city has positioned stablecoin regulation at the heart of its strategy to become a global crypto and fintech hub.

In October 2025, the Financial Times reported that Ant Group and JD.com had paused their Hong Kong stablecoin plans after regulators in mainland China, including the People’s Bank of China and the Cyberspace Administration of China, raised concerns about privately controlled digital currencies. Major fintech players including Ant International had previously signaled intentions to seek Hong Kong stablecoin licenses as the city rolled out its new regime.

The missed March deadline comes as Hong Kong continues to develop its digital asset regulatory framework, with officials previously indicating that the first batch of licenses would be issued before the end of the first quarter of 2026.

FAQ

Why did Hong Kong miss its March target for stablecoin licenses?

The HKMA has not provided a specific reason for the delay, but reports indicate regulators are pushing applicants to refine key aspects of their applications including reserve asset disclosures, anti-money laundering controls, redemption mechanisms, and stress testing scenarios. The HKMA stated it is actively taking forward the licensing matter and will announce details in due course.

Which institutions are expected to receive Hong Kong’s first stablecoin licenses?

HSBC and a joint venture backed by Standard Chartered, Animoca Brands, and Hong Kong Telecommunications (HKT) are widely considered frontrunners for the initial approvals. A second wave of applicants including Futu Securities and OSL Group is expected to follow in later rounds.

How many applications did the HKMA receive for stablecoin licenses?

The HKMA received 36 applications under the stablecoin regime, which took effect in August 2025. The regulator has not disclosed which applicants remain under active review or how many licenses will be issued in the first batch.