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Hong Kong plans to begin issuing licenses for the issuance of stablecoins by the end of March. The financial secretary of this special region of China, Paul Chan, spoke about this at the World Economic Forum in Davos.
The stablecoin licensing regime, approved by the Hong Kong authorities in 2025, imposes strict requirements on issuers. Companies are required to provide fiat asset reserves, guarantee token redemption, and comply with local risk management standards. In parallel, the region has a special licensing regime for trading crypto platforms. According to Hong Kong’s Securities and Futures Commission (SFC), 11 companies have permission to trade digital assets. Among them are OSL, HashKey and Bullish.
New licensing rules should affect operations with crypto assets, consulting services and digital asset management. It is proposed to abolish the investment threshold for management companies. Now they can invest up to 10% of funds in crypto-assets without obtaining an additional license – just notify the regulator. The authorities’ initiative suggests that even a minimal share of cryptocurrencies in the portfolio will require obtaining a full license for managing virtual assets.
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The Hong Kong Securities and Futures Professionals Association (HKSFPA) called this approach of the authorities disproportionate to the risks that are possible when investing in the crypto market. The new rules may discourage management companies from experimenting with crypto-assets, the HKSFPA insists.
The organization also spoke out against changing the rules for storing assets. The authorities want to oblige virtual asset managers to place funds exclusively through specially licensed companies. The association believes that such a procedure will be impractical for private equity funds and venture capital investing in tokens at the early stages: Hong Kong custodial services do not yet support such an option.
Hong Kong authorities also want broker-dealers who trade crypto, along with regular brokers, to receive a special license to trade digital assets.
