More than 40 companies are in fierce competition to issue stablecoins in Hong Kong: report

2025/07/08 20:54

The race for stablecoin licenses in Hong Kong is heating up, with dozens of firms preparing to apply ahead of the new regulatory framework set to go live.

According to a recent report by local media outlet First Financial, more than 40 companies are preparing to apply for the soon-to-be-launched Hong Kong stablecoin license.

Applicants reportedly include JD.com and Ant Capital, with anticipation mounting as the August 1 rollout date nears after months of regulatory work to finalize the framework amid growing market interest.

However, local industry sources say the number of licenses regulators will issue is expected to be limited, potentially in the single digits, despite the high level of demand. 

The comments suggest a cautious approach by the regulator to keep the sector controlled to ensure oversight and investor protection. Earlier in the year, the Hong Kong Monetary Authority (HKMA) outlined a strict set of requirements for approval, including robust risk controls, compliance with anti-money laundering rules, and a clear demonstration of real-world use cases for any stablecoin issued.

Financial Secretary Paul Chan said the government is taking a step-by-step approach to the stablecoin regime, starting with building a regulatory foundation and initially focusing on fiat-pegged tokens.

Chan also explained that the broader goal is to position Hong Kong as a competitive global hub by attracting stablecoin issuers from around the world.

The country’s push is part of a broader overhaul of its digital asset policy. On June 26, regulators introduced a new “LEAP” framework, under which the stablecoin licensing regime will officially roll out. Additionally, it will set the stage for future pilot programs testing stablecoin use in everyday scenarios such as payments and other financial services.

As part of the initiative, the government also plans to promote collaboration between public agencies and industry players to help build the underlying infrastructure for the fiat-backed digital assets.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Crypto Scammer’s Sentence Jumps from 18 Months to 12 Years in $20M Fraud Case

Crypto Scammer’s Sentence Jumps from 18 Months to 12 Years in $20M Fraud Case

A man convicted in a $22 million crypto fraud scheme saw his prison sentence sharply increased after failing to repay the money he owed his victim. Nicholas Truglia, 27, who was initially sentenced to 18 months, received a new 12-year sentence on Thursday in a New York federal court. U.S. District Judge Alvin Hellerstein ordered the increase after ruling that Truglia had willfully ignored his obligation to pay back nearly $20.4 million in restitution. “You paid not a cent, not one cent,” Judge Hellerstein told Truglia during the hearing. The judge further ordered an added 3-month supervised release while noting Truglia’s lifestyle. “You didn’t have a job, but you lived in splendor,” Judge Hellerstein said. Judge Slams Crypto Fraudster’s Lavish Lifestyle in SIM-Swap Sentencing According to the report from Bloomberg, Truglia’s legal team argued the new sentence was unlawful. His attorney, Mark Gombiner, said in court that the punishment was “an extraordinary abuse of discretion” and confirmed plans to appeal. #breaking for real: Hacker Truglia sentenced to 12 years, more than double the guideline of 51 to 63 months, for not paying his $20 million restitution. Video of him speaking behind a mask cited and used. Appeal to follow – but remand to Marshals about to occur https://t.co/tWBdzgd4zT — Inner City Press (@innercitypress) July 10, 2025 Arrested in the California Bay Area in 2018, Truglia pleaded guilty in 2021 to participating in a scheme that involved hijacking a victim’s phone number through SIM swapping and draining their crypto accounts. The hackers exploited a telecom employee to gain control of Michael Terpin’s phone number. Terpin, a blockchain investor and CEO of Transform Group, suffered a loss of $24 million due to this scheme. Notably, Truglia was tasked with converting stolen cryptocurrency into Bitcoin. In 2019, Terpin filed a civil lawsuit for $75 million against the scammer and was awarded the full amount in damages by the court. That same year, he also took legal action against AT&T, his wireless carrier at the time, filing a $224 million lawsuit for their negligence. Their failure to secure his cell phone allowed the hackers to compromise it, resulting in his loss. At the time of his initial sentencing, prosecutors revealed that Truglia held more than $50 million in assets, including cryptocurrency, luxury goods, and fine art. Gombiner told the court that his client had turned over all assets he could access, including funds from a Wells Fargo account. Truglia claimed that much of his wealth remained locked in an inaccessible Bitcoin wallet. He told the judge he would repay the victim if he could access the funds. Terpin, who joined the hearing by phone, rejected that explanation, calling it “a giant smoke screen.” U.S. Ramps Up Enforcement as Crypto Crimes Lead to Decades-Long Sentences In the U.S., crypto crimes continue to result in severe penalties. On May 23, Trung Nguyen, a Massachusetts man who ran an unlicensed cash-to-Bitcoin business, was sentenced to six years in federal prison . His company, disguised as a vending machine operator, processed over $1 million in illicit cash, including funds for a known methamphetamine dealer. Nguyen, who used the alias “DCS420,” was convicted in 2024 for money laundering and failing to register with FinCEN. Just two weeks earlier, on May 9, Mohammed Azharuddin Chhipa received a 30-year sentence for sending crypto to ISIS operatives . U.S. prosecutors revealed that between 2019 and 2022, Chhipa funneled more than $185,000 to the terrorist group, funding fighters and prison escapes. 👨‍⚖️ A federal judge sentenced Chhipa to over 30 years for funding ISIS through cryptocurrency, supporting fighter salaries, and prison breaks. #DOJ #CryptoCrime https://t.co/74BdhgaEjh — Cryptonews.com (@cryptonews) May 9, 2025 His use of burner phones and fake identities ultimately failed to hide his tracks. He was caught attempting to flee and intercepted on an Interpol notice. Meanwhile, the U.S. Department of Justice is pushing for a 20-year sentence for Alex Mashinsky, the former CEO of Celsius. Prosecutors say Mashinsky’s fraudulent practices cost investors $550 million, describing his actions as deliberate and self-serving. ⚖️ Celsius founder Alex Mashinsky was sentenced to 12 years in prison for defrauding investors with false promises of high crypto returns. #Celsius #AlexMashinsky https://t.co/R4syyDiKaU — Cryptonews.com (@cryptonews) May 9, 2025 He pled guilty in late 2024 after Celsius collapsed in mid-2022, freezing $4.7 billion in customer funds. These back-to-back cases underscore mounting pressure from courts and regulators to address crypto misuse, whether through scams, market abuse, money laundering, or terrorism financing.
Share
CryptoNews2025/07/11 11:28