Hong Kong stablecoin regulation implemented, Capital Market enthusiasm cools down

On the first day of the implementation of the "Stablecoin Regulations", the enthusiasm in the Capital Market significantly decreased. Data shows that on August 1st, the stablecoin concept stocks in both A-shares and Hong Kong stocks generally declined. Among them, several Hong Kong companies saw a drop of over 10%, and related stocks in A-shares also experienced noticeable declines.

Unlike the situation when the draft regulations were passed, on August 1, Hong Kong financial regulators did not release any new information related to stablecoins. Previously, on July 29, the regulators had published the licensing system document for stablecoin issuers.

At a technology briefing, regulators stated that the first batch of stablecoin issuer licenses is expected to be issued in early 2026. At the same time, regulators emphasized concerns about money laundering risks and clearly stated that the identities of initial compliant stablecoin holders must be verified, which to some extent implies the implementation of a real-name system.

In addition, regulators have repeatedly emphasized that they expect only a single-digit number of licenses to be issued in the first batch.

Some experts believe that regulatory standards are stricter than market expectations, the licensing time is later than expected, and the number of licenses issued is fewer than expected. These factors have led to a correction in the prices of stablecoin concept stocks. Overall, the market reflects expectations for the implementation of Hong Kong's stablecoin policy. The attitude of regulatory agencies indicates that there will be more emphasis on safety and stability in the early stages of licensing, which may mean that certain popular institutions anticipated by the market may not be able to obtain the first batch of licenses.

Stablecoins are a special type of cryptocurrency that are typically pegged to fiat currencies or other reference assets to maintain a relatively stable value. In recent years, stablecoins have gradually penetrated traditional financial fields such as cross-border payments due to their characteristics of value stability, high efficiency, and low cost, attracting significant attention from major economies around the world.

Hong Kong financial regulators have particularly emphasized the regulatory requirements for anti-money laundering. According to the latest guidelines, stablecoin issuers are required to implement anti-money laundering measures such as risk assessments, customer due diligence, ongoing monitoring, stablecoin transfers, and suspicious transaction reporting.

With the official implementation of the "stablecoin regulations", the market remains highly attentive to the list of licensed stablecoin issuers in Hong Kong. Some analysts believe that attention should be paid to issuers that may obtain the first batch of scarce licenses, as well as platforms that are definitively participating in the creation of stablecoin use cases.

Currently, dozens of institutions have expressed their intention to apply for stablecoin licenses, including payment institutions, internet companies, commercial banks, and more. Among them, some institutions that have entered the regulatory sandbox, as well as companies with advantages in cross-border payments and technological reserves, are considered more likely to be among the first to obtain licenses.

Despite the slower-than-expected pace of licensing, the development of the Hong Kong stablecoin market is still promising as the regulatory framework gradually improves. In the future, the application of stablecoins in real economic scenarios such as cross-border trade settlement may receive more attention.