Hong Kong has postponed its first batch of stablecoin licenses amid cash laundering considerations that might warrant stricter KYC guidelines.
Hong Kong Has Delayed Its Preliminary Batch Of Stablecoin Licenses
As reported by Wu Blockchain, citing protection from Caixin, Hong Kong has postponed the issuance of its first stablecoin approvals, that means that candidates could be ready for longer earlier than they will obtain a license.
Hong Kong first handed its stablecoin invoice in August 2025, making it in order that organizations trying to subject stablecoins within the Chinese language metropolis’s jurisdiction might want to purchase approval from the Hong Kong Financial Authority (HKMA).
Following the rollout of the brand new guidelines, HKMA began receiving functions from large names like Commonplace Chartered in its Joint Enterprise (JV) and HSBC. The primary batch of approvals was anticipated to exit by the top of March, however now April has begun, and no licenses have been handed out in any respect.
“Hong Kong is anxious that stablecoins could also be used for cash laundering and will subsequently implement stricter KYC rules,” famous Wu Blockchain. The delay has thrown a wrench within the plans of 36 candidates. Earlier, mainland Chinese language regulators cracked down on the sector, stating that fiat-tied cryptocurrencies don’t qualify as authorized tender, as they fail to satisfy regulatory necessities and pose a danger of getting used for unlawful actions.
Regardless of the mainland’s stance, nevertheless, Hong Kong nonetheless moved ahead with its stablecoin plans, asserting in February {that a} “very small quantity” of issuer licenses could be handed out in March. With that plan not coming to fruition, it now stays to be seen when the HKMA will be capable to advance the town’s stablecoin ambitions.
Elsewhere in Asia, South Korea has additionally seen its stablecoin plans stall, with the Financial institution of Korea (BoK) arguing for bank-majority stablecoins, whereas the Monetary Companies Fee (FCS) advocates for laxer guidelines.
In the meantime, Japan took forward of its neighbors with the launch of its first yen-backed coin final yr. The nation might additionally see its first bank-backed stablecoin this yr, with Shinsei Belief and Banking planning on a Q2 2026 launch.
Over in the US, President Donald Trump signed into regulation the GENIUS Act final yr, offering a proper framework for stablecoins. General, this a part of the cryptocurrency sector has seen important international regulatory momentum over the previous yr, so it’s not shocking to see that its market cap has held up comparatively effectively regardless of the latest market downturn.
The development within the stablecoin market cap during the last a number of years | Supply: DefiLlama
Because the chart from DefiLlama exhibits, the market cap of the fiat-tied tokens has largely moved sideways in latest months, with its worth presently sitting at $316 billion, a brand new all-time excessive (ATH).
Bitcoin Value
On the time of writing, Bitcoin is buying and selling round $68,700, down over 4% within the final week.
Appears like the worth of the coin has gone up a bit over the previous day | Supply: BTCUSDT on TradingView
Featured picture from Dall-E, chart from TradingView.com
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