HKMA Stablecoin Licenses Face High Bar as Ordinance Takes Effect

HKMA stablecoin licenses will be tightly controlled under Hong Kong’s new Stablecoin Ordinance, which took effect in August, with the regulator signalling a high bar for approval. The HKMA expects only a limited first batch of issuers to be licensed early next year. Meanwhile, Hong Kong Exchanges and Clearing has reportedly queried at least five companies seeking to rebrand as Digital Asset Treasury firms holding large crypto reserves, citing listing rules that bar firms from excessive cash-like assets. Bloomberg said no approvals have yet been granted, while Ant Group and JD.com have paused stablecoin plans following pressure from Beijing, according to the Financial Times.