Hong Kong’s Stablecoin License Lottery: 30 Applicants, 1 Slot – Who Wins?

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Behold, the financial overseers of Hong Kong have declared that they shall soon bestow upon the world a minuscule batch of stablecoin licenses, as if distributing scraps to a pack of hungry wolves. The review process, a labyrinthine ordeal, is said to be nearing its conclusion-though one might argue it has been “nearing” since the dawn of time.

HKMA To Grant Limited Stablecoin Licenses Soon

On a fateful Monday, the Chief Executive of the Hong Kong Monetary Authority, a man whose name is as memorable as a tax form, proclaimed that the first batch of stablecoin licenses shall be issued next month. A marvel of modern bureaucracy, this announcement is met with the same enthusiasm as a dinner party guest who insists on reciting the periodic table.

At a Legislative Council meeting, Yue, ever the statesman, affirmed that the authority expects to issue a “very small number” of licenses in March. A “very small number,” one might note, is the same as “none” in the language of regulatory whimsy.

In August, the HKMA enacted the Stablecoins Ordinance, a document so dense with jargon it could double as a doorstop. Any entity seeking to issue a fiat-referenced stablecoin must now obtain a license, lest they be deemed unworthy of Hong Kong’s financial embrace.

Local news outlets report that over 30 companies have applied, including Ant Group’s overseas arm and a logistics firm whose name sounds like a failed pun. One wonders if their applications were submitted in triplicate, accompanied by a dossier of existential dread.

In December, legal experts warned that Hong Kong’s crypto ambitions might be thwarted by the People’s Bank of China’s crackdown-a bureaucratic equivalent of a parent forbidding a child from playing with fire, while secretly hoping the child burns down the house.

As reported by Bitcoinist, regulators insist stablecoins aren’t legal tender in the mainland, delaying the 2026 schedule. A delay, one might say, as inevitable as the sun setting on a dreamer’s hopes.

Yet Hong Kong’s Financial Secretary, Paul Chan Mo-po, remains undeterred, confirming the plan to grant licenses in Q1 at the World Economic Forum. A man of conviction, or perhaps a man who has never met a spreadsheet he couldn’t ignore.

During a media briefing, HKMA’s Chief Executive noted the review process is nearly complete. A feat akin to finishing a novel written in a language that doesn’t exist. He also emphasized focus on use cases, risk management, and anti-money laundering-terms so vague they could describe a toddler’s bedtime routine.

Moreover, licensed issuers must comply with local regulations for cross-border activities, though “mutual recognition arrangements” with other jurisdictions remain a distant mirage, like a desert oasis that evaporates when approached.

Hong Kong Continues Crypto Regulation Efforts

Hong Kong, ever the ambitious underdog, strives to become a global crypto hub. Its efforts include enabling insurance companies to invest in cryptocurrencies-a move as sensible as teaching a cat to ride a bicycle.

Notably, authorities explore rules to let insurers dabble in crypto and infrastructure. A noble pursuit, though one might question the wisdom of entrusting financial stability to a system that crashes every time a meme goes viral.

The upcoming Crypto Asset Reporting Framework (CARF) aims to enforce global tax transparency, preventing tax evasion. A noble cause, though its implementation may resemble a game of Whac-a-Mole, with regulators chasing digital ghosts.

The HKSFPA, ever the voice of reason, warns that CARF’s amendments could create operational nightmares. A sentiment echoed by every bureaucrat who’s ever had to fill out a form twice.

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2026-02-03 14:31