Particle.news
Download on the App Store

Hong Kong Sets March Launch for First Stablecoin Licenses as SFC Clears Margin Loans and Perpetuals

Officials cast the rollout as a narrow, compliance‑first pilot centered on payments use cases with tokenized deposits as a proving ground.

Overview

  • Financial Secretary Paul Chan said a small, selective batch of stablecoin licenses will be issued next month to issuers with credible models and strong compliance.
  • HKMA chief Eddie Yue said about 36 applications are under review, with emphasis on full‑reserve backing, redemption at par, robust AML controls and clear payment use cases.
  • The SFC unveiled new rules allowing licensed brokers to offer margin financing using bitcoin and ether as eligible collateral, with existing securities safeguards applied.
  • A high‑level framework will permit perpetual contracts for professional investors only, coupled with transparency, risk‑management and market‑making controls for licensed platforms.
  • Hong Kong is also moving to finalize custodian licensing legislation this summer, proceeding even as Chinese regulators reiterate the mainland crypto ban and regional rivals like the UAE court the sector.