The Hong Kong Monetary Authority (HKMA) is on track to grant the city's inaugural stablecoin license as early as March 2025, a landmark regulatory decision that could reshape Asia's digital finance landscape. This follows the passage of a comprehensive stablecoin ordinance in May 2024, which took effect in August 2024, mandating that any entity issuing stablecoins pegged to the Hong Kong dollar must obtain a formal license. The HKMA has received 36 applications from firms seeking approval.
During a Legislative Council meeting on February 2, 2025, HKMA Chief Executive Eddie Yue confirmed the review process is advancing, with a decision expected in March. This proactive stance creates a stark contrast with mainland China, where authorities, including the People's Bank of China (PBOC), maintain deep reservations over risks like market volatility, illicit finance, and threats to monetary sovereignty.
In a parallel development, the Securities and Futures Commission (SFC) announced plans to unveil a framework allowing trading platforms to offer perpetual futures contracts. SFC CEO Julia Leung revealed the initiative at the Consensus Hong Kong conference, stating the framework will focus on risk management and fairness to customers. Initially, these products will be available only for institutional investors, not retail clients.
Leung also outlined two other key initiatives: allowing brokers to provide financing to clients with strong credit profiles using bitcoin (BTC) and ether (ETH) as collateral, and permitting platforms to engage in market-making through independent units with robust conflict-of-interest rules. These moves are part of the SFC's broader 2025 roadmap to develop Hong Kong's local crypto market.
