No stablecoin license is expected to be granted this year, the Hong Kong Monetary Authority said, as it issued guidelines on the regulatory regime that are set to take effect on Friday.
Applying for a license requires extensive documentation submission and involves heavy workloads, and an equal amount of effort is needed for the regulator to review all materials, said deputy chief executive Darryl Chan Wai-man.
He estimated that the earliest licenses could be issued by early next year, with only a few to be granted initially.
Chan said he does not expect the local stablecoin market to grow explosively in its early stages, while warning of uncertainties around achieving significant business size or profits too quickly.
