Key Takeaways
- Hong Kong’s Stablecoin Ordinance will enter into force on Aug. 1.
- The first licenses are expected to be approve by the end of the year.
- Amid optimism surrounding the new regulation, Hong Kong crypto stocks have rallied.
Ahead of Hong Kong’s Stablecoin Ordinance entering into force on Aug. 1, Treasury Secretary Xu Zhengyu has said he expects the first licenses under the new framework to be granted by the end of the year.
Following Xu Zhengyu’s comments, Hong Kong crypto stocks rose on Tuesday, July 7, with the brokerage and investment bank Guotai Junan International (GJI) leading the rally.
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Xu Zhengyu: Stablecoin Licenses Expected This Year
In an interview with Ming Pao News published on Monday, Xu Zhengyu said he expects firms to make license applications once the Stablecoin Ordinance is enacted.
He said the Hong Kong Monetary Authority aims to approve the first applications by the end of the year. However, he anticipates that the number of licenses issued will initially remain in the single digits.
HKMA Chief Executive Eddie Yue has previously stated that “only a handful of licenses will be granted initially.”
Companies that have publicly expressed their interest in applying for a license include Alipay operator Ant Group, e-commerce giant JD.com, and a joint venture between Animoca Brands, Standard Chartered, and HKT that is exploring issuing a HKD-pegged stablecoin.
Hong Kong Crypto Stocks Rally
Amid heightened optimism surrounding the Stablecoin Ordinance, Hong Kong-based crypto companies have performed well on the stock market.
Crypto exchange operators led the rally, with OSL, Huobi owner New Huo and OKX owner OKG climbing between 4% and 14% on Tuesday morning.
Meanwhile, Dmall is up nearly 40% since it announced plans to apply for a Hong Kong stablecoin license last week.
Guotai Junan International Surges 80% in July
GJI is another company that has benefited from Hong Kong’s maturing crypto regulation.
In June, the firm received approval from Hong Kong’s Securities and Futures Commission (SFC) to offer crypto trading and advisory services, becoming the first mainland China‑backed brokerage to obtain such a license
So far in July, GJI’s share price has climbed around 80%, including a 16% jump on Tuesday.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
