UPDATE 1-Hong Kong regulator targets March for first stablecoin licences

The Hong ‌Kong Monetary Authority Chief Executive Eddie Yue said on ⁠Monday the regulator expects to issue its first batch of stablecoin issuer licences in March, ​with only a "very small number" ‍to be granted initially.

Addressing a Legislative Council meeting, Yue noted that the review process for ⁠applications ‌is ⁠nearing completion. At a subsequent media briefing, he ‍highlighted that assessments are focusing on areas ​including use cases, risk management, anti-money laundering ⁠measures, and the backing assets of the stablecoins.

Licensed ⁠issuers must comply with local regulations for cross-border activities. Mutual recognition ⁠arrangements with other jurisdictions could be explored in ⁠the ‌future, he added.