Hong Kong's stablecoin new regulations are in effect! Animoca Brands and Standard Chartered Bank lead the first batch of license applications.

Web3 investment giant Animoca Brands, in partnership with Standard Chartered Bank and Hong Kong Telecommunications (HKT), has officially launched the process of applying for a stablecoin issuance license in Hong Kong. With the Hong Kong Stablecoin Regulation officially taking effect on August 1, this move not only marks the beginning of a new era of stablecoin regulation in Hong Kong, but also draws significant attention from the global encryption industry towards the "strictest stablecoin regulations."

Three Giants Join Forces to Enter the Hong Kong Stablecoin Market

On August 1, Anchorpoint Financial submitted its formal intention to the Hong Kong regulatory authorities for a stablecoin issuance license, which is the first step in the application process mandated by the Hong Kong Monetary Authority. Evan Auyang, President of Animoca Brands, emphasized that stablecoins are one of the most promising applications in Web3, and the compliant development of fiat-backed stablecoins is crucial for solidifying Hong Kong's status as an international financial center. This application also echoes the earlier exploration by three companies to issue Hong Kong dollar-backed stablecoins.

Hong Kong's Stablecoin Regulation Comes into Effect, Implementing the World's Strictest Regulatory Standards

On August 1, the Hong Kong "Stablecoin Regulation" officially came into effect, becoming the world's first comprehensive regulatory framework for fiat stablecoins. The regulation requires issuers to be licensed, with a paid-up capital of not less than 25 million HKD, and 100% of reserve assets must be allocated to highly liquid assets and independently custodied at a licensed bank. Strict KYC and anti-money laundering regulations require identity verification for all coin holders, and daily public reserve audit reports. Users can unconditionally redeem fiat at face value, and issuers must complete the redemption within one business day.

Market Landscape and Innovation Challenges Under Regulatory Pressure

The Hong Kong stablecoin regulations are known for their high thresholds and strict scrutiny, effectively excluding small and medium enterprises as well as internet companies, with issuance rights concentrated in large banks and financial institutions. The regulations also restrict functions such as DeFi and anonymous wallets, imposing multiple compliance barriers on cross-border operations and overseas users. This trend forms a "twin star" pattern with Singapore's similarly stringent encryption regulations, while the United States demonstrates a more proactive and inclusive regulatory blueprint through Project Crypto, accelerating the differentiation of the global encryption industry landscape.

Global regulatory differentiation, Hong Kong positions itself as a financial bridgehead

Financial centers such as Hong Kong and Singapore prioritize stability and order, emphasizing anti-money laundering and user real-name registration, while setting strict boundaries on innovation. The United States, on the other hand, focuses on systematic regulation, innovation exemptions, and super applications, attracting more and more encryption projects to migrate. In the future, the Hong Kong stablecoin market will be dominated by a few licensed giants, and how to balance compliance and innovation will become the industry's focal point.

Conclusion

Animoca Brands has teamed up with giants like Standard Chartered Bank to apply for a Hong Kong stablecoin license, marking the arrival of the era of the most stringent regulation globally. Although the Hong Kong stablecoin regulations have boosted market confidence and international status, high thresholds and strict reviews also pose challenges to innovation and competition. As the global regulatory landscape becomes fragmented, whether Hong Kong can find a balance between compliance and innovation will determine its future role in the international encryption financial stage.