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, which means that candidates can 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 seeking to situation 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 purposes from huge names like Customary 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 worried that stablecoins could also be used for cash laundering and should due to this fact implement stricter KYC laws,” 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 threat of getting used for unlawful actions.
Regardless of the mainland’s stance, nonetheless, Hong Kong nonetheless moved ahead with its stablecoin plans, saying in February {that a} “very small quantity” of issuer licenses can be handed out in March. With that plan not coming to fruition, it now stays to be seen when the HKMA will be capable of advance 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 Providers 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 12 months. The nation may additionally see its first bank-backed stablecoin this 12 months, with Shinsei Belief and Banking planning on a Q2 2026 launch.
Over in america, President Donald Trump signed into regulation the GENIUS Act final 12 months, offering a proper framework for stablecoins. General, this a part of the cryptocurrency sector has seen vital world regulatory momentum over the previous 12 months, so it’s not stunning to see that its market cap has held up comparatively effectively regardless of the current market downturn.
The development within the stablecoin market cap over the past 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 current months, with its worth at the moment 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.
Seems to be 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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