Hong Kong’s financial watchdog will grant a first batch of “very few” stablecoin issuer licenses in March, according to Reuters.
Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), said he plans to issue the first round of stablecoin issuer licenses in March, during a speech at a meeting of Hong Kong’s Legislative Council on Monday.
However, he clarified that only a “very small number” would be approved initially.
Stablecoins, a subset of cryptocurrencies whose prices are anchored to fiat currency like the U.S. dollar, are growing in adoption around the world as major jurisdictions around the world implement regulatory frameworks. Last year, stablecoins moved $35 trillion on the blockchain.
Currently a $300 billion asset class, Citi predicts stablecoins will become a $1.9-4 trillion market. Standard Chartered CEO Bill Winters said Hong Kong’s push toward tokenized currency and stablecoins could lay the foundation for a new era of digital trade settlement.
Yue noted that the application review process is almost complete.
The HKMA chief pointed out that the criteria for evaluating the approval of the stablecoin issuer license focused on issues such as risk management, anti-money laundering measures and stablecoin supporting assets.
He also said licensed issuers must comply with local regulations for cross-border activities, adding that mutual recognition agreements with other jurisdictions could be explored in the future.
