"Hong Kong Virtual Currency License" Battle Begins: Over 40 Companies Compete for the New Regulations in August

Hong Kong’s stablecoin licensing system was launched in August, sparking an unprecedented license race. According to industry statistics, over 40 companies are gearing up to submit applications, including traditional financial giants and tech startups. However, it is expected that only a handful will successfully break through in this fierce competition.

Hong Kong Financial Secretary Paul Chan recently admitted that only a few applicants will ultimately be approved. This judgment reflects Hong Kong’s consistent cautious approach to digital financial regulation—preferring to do things properly rather than hastily, to ensure the healthy development of the industry.

Sandbox Pioneers, Planning the Next Stage of Competition

In this wave of applications, institutions participating in the stablecoin issuance “sandbox” program hold an early advantage. Participants such as Standard Chartered Bank, Animoca Brands, Hong Kong Telecom, JD Chain Technology, and Yuanbi Innovation Technology have accumulated regulatory experience and operational data, making them the top candidates most likely to obtain the “Hong Kong Virtual Currency License.”

Besides the sandbox pioneers, mainland Chinese media outlet First Financial reports that over 40 major Chinese financial and tech firms are preparing to apply, with even more potential applicants reported by law firms. This indicates that the stablecoin licensing system has not only attracted attention in Hong Kong but also drawn the focus of the entire Greater Bay Area industry.

Hong Kong Regulatory Threshold: The Test of “Prefer Quality Over Quantity”

Hong Kong’s standards for digital asset regulation have always been strict, as seen from the issuance of virtual asset exchange licenses by the Securities and Futures Commission (SFC). When the system was launched, application enthusiasm was high, but to date, only 11 licenses have been issued, and several well-known platforms have voluntarily withdrawn their applications for not meeting regulatory requirements.

After conducting a series of on-site inspections, regulators found that many platforms’ operations were far from compliant with Hong Kong’s standards. The stablecoin licensing system is expected to continue this rigorous approach. Applicants must not only have strength but also demonstrate a deep understanding of Hong Kong’s regulatory framework and the ability to implement it effectively.

Who Will Get the Entry Ticket? The New Landscape of Virtual Assets Takes Shape

This high-pressure selection process is essentially a reshuffle of the industry. It will test participants’ technical capabilities, risk control skills, and compliance awareness, while also determining who can become the first “legitimate stablecoin” providers and seize the opportunity in Hong Kong’s new digital financial order.

For Hong Kong, the stablecoin licensing system is also a testing ground for reshaping Asia’s digital financial rules. Through strict selection, Hong Kong aims to build a safe, transparent, and compliant stablecoin ecosystem, attracting global institutions’ confidence in Hong Kong’s virtual currency licensing system, thereby consolidating its position as Asia’s financial center. For applicants, this license is more than just a regulatory approval; it is an important ticket in the future competition for digital finance.