Hong Kong’s going hard on stablecoin regulation. Around 80 companies have applied for stablecoin licenses, but only a handful will get approved when the first batch drops in early 2026. The rules are seriously strict too.
The Hong Kong Monetary Authority is requiring stablecoin reserves to be backed entirely by high-quality liquid assets. That means ultra-safe short-term holdings that can be converted to cash immediately. No other jurisdiction has gone this far yet.
Why so strict? The JPEX scandal is still fresh in everyone’s mind. That unlicensed crypto platform allegedly stole around $166 million from Hong Kong investors between 2020 and 2023. The police are still dealing with it. Regulators want to make sure nothing like that happens again.
What’s interesting is the HKMA is handling everything under one roof. Licensing, reserves, custody, redemption, distribution, all of it. That’s unusual. Most places split this stuff between multiple agencies. Companies that disagree with HKMA decisions can appeal to a special Stablecoin Review Tribunal instead of waiting years in regular courts.
The city’s betting big on tokenization too. They’re testing tokenized bank deposits through the EnsembleTX pilot launched November 13th. If it works, Hong Kong could be one of the first places to integrate tokenized deposits directly into banking infrastructure.
Conclusion
Hong Kong’s stringent stablecoin framework reflects its ambition to become a regulated institutional digital asset hub, balancing innovation with strict oversight to rebuild trust after past crypto scandals.
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