Hong Kong's second round of stablecoin licenses has no set timetable; total permits will remain tightly capped

Apr. 13 (UTC+8) — Hong Kong has yet to set a schedule for issuing a second batch of stablecoin licenses, as the decision will hinge on the "operational performance" of the first two licensees, Eddie Chan, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), said, according to ME News. Chan also noted that the overall number of stablecoin licenses will be kept very limited. Sources said Chinese-funded institutions that had already submitted applications were given regulatory "window guidance" asking them to pause further stablecoin licensing efforts for now. Some of these institutions have nonetheless remained in contact with the HKMA in recent months. Market participants said that once Chinese-funded institutions are excluded, most remaining potential applicants have relatively limited capabilities, and only a small number of institutions currently fully meet the requirements under the Stablecoin Ordinance. Separately, Li Guankang, head of PayMe at HSBC, said any PayMe user can open a stablecoin account to send funds to family and friends, pay merchants, or invest in products pegged to stablecoins. Users of the HSBC app cannot open such accounts directly; they must wait for HSBC to identify eligible customers who can then apply. PayMe registration is restricted to Hong Kong residents, while HSBC app users include customers from mainland China. Under Hong Kong's current rules, only Hong Kong residents are allowed to participate in virtual asset transactions. As a result, even mainland customers who use PayMe via HSBC Hong Kong are not eligible to apply for stablecoin accounts. (Source: Foresight News)