Hong Kong & Stablecoins: It’s Complicated 🤷‍♀️

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Okay, so Hong Kong has a stablecoin bill now. It’s officially “in effect,” which sounds very dramatic, doesn’t it? Like a Bond movie. The financial authorities are promising licenses early next year. Early next year! That’s… a timeframe. Here’s what we know, mostly because they’re finally telling us. 🙄

  • Hong Kong’s stablecoin bill debuted on August 1st. Groundbreaking.
  • Licenses will *maybe* be given out in early 2026. Gotta keep everyone on their toes, right? It’ll let companies issue stablecoins tied to the HKD and USD. Fancy.

On August 1st, Hong Kong unleashed the “Stablecoin Ordinance” – the region’s FIRST ever stablecoin bill. Apparently, they needed a rulebook for this. Who knew? It’s basically a permission slip for companies wanting to issue those digital dollar things. It’s a formalized framework, which is basically government-speak for “we’re finally paying attention.”

Reuters reported the Hong Kong Monetary Authority (HKMA) thinks licenses will start appearing sometime next year. Companies like JD.com and Standard Chartered are lining up. It’s like Black Friday for crypto…except slower and with more paperwork. 📝

But don’t get too excited! Deputy chief executive Darryl Chan—great name, by the way—says they’re only handing out “a handful” of licenses in the first round. A “handful.” That’s…specific. It’s like offering a single crumb while everyone else expects a cake.

Speaking of excitement, the HKMA scolded everyone for getting ahead of themselves. They told companies to stop making promises they can’t keep. Which is generally good life advice, honestly. 🤷‍♀️ Apparently, hype is a regulatory concern now.

No licenses have actually been issued *yet*. You have until August 31st to tell the HKMA you want one, and then you can officially apply until September 30th. It’s a lot of dates. I need a flowchart. 😫 Most companies want US or Hong Kong dollar-pegged stablecoins. Chinese yuan coins need to explain themselves. Because, you know, reasons.

What Does a License Even *Do*?

Basically, a license lets you issue stablecoins tied to the Hong Kong dollar and do business here. It also stops random people from advertising stablecoins and trying to scam you. Which is… good. It’ll also require you to prove you actually HAVE the money to back up those digital tokens on a 1:1 basis. No funny business!

Apparently, this whole thing is “invite-only.” They’re pre-screening applicants. Which feels a little exclusive. It’s like the velvet rope for crypto. 💅

An unnamed source (always the best sources) says the HKMA will chat with potential issuers *before* they even apply to see if they measure up. Don’t bother applying if you haven’t been deemed worthy!

No VPNs, Please!

Here’s where it gets interesting. The HKMA doesn’t want people using VPNs to access stablecoins from places where they’re illegal. So, if you’re trying to circumvent the rules, they want to stop you. It’s a digital border patrol for crypto. 👮‍♀️

License holders have to build “safety measures” to block VPN users. So basically, they’re trying to control where their digital money goes. It’s quite a commitment!

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2025-08-01 10:25