Hong Kong Stablecoin License

What is the Hong Kong Stablecoin License?

Influenced by Hong Kong'sStablecoin Regulations》Regulation，Issued by any institution in Hong Kong、promotion、Redeem or operate stablecoin business，You must first obtain a stablecoin license issued by the Hong Kong Monetary Authority (HKMA)。Any institution conducts stablecoin business without permission，All are illegal，Once convicted, you may face criminal liability and fines，and must exit the market。

• No license = illegal，Facing criminal liability and fines，and need to exit the market within the time limit。
• Having a license = having official recognition，Customer funds and reserves are fully transparent，Can effectively enhance trust in the market and supervision。

What is stablecoin business in Hong Kong?

Stable currency business generally refers to legal currency (Hong Kong dollars、Dollar、RMB, etc.) as anchor assets，Issued in Hong Kong、Activities to distribute or redeem stablecoins，include：

1. Issuance of stablecoins、Casting and Redemption；
2. Public promotion and sale of stablecoins；
3. Management and custody of capital reserves；
4. Stablecoin payment and clearing activities；
5. and cross-border payments、Stable currency business related to Web3 applications and real asset tokenization (RWA)。

Information required for Hong Kong stablecoin license application

1. Application form and declaration form；
2. Company registration documents and Hong Kong office certificate；
3. no less than 2,500 HK$10,000 paid-in capitalfinancial proof；
4. Business plan and financial budget for the next three years；
5. Reserve asset arrangement (100% full support，Custody bank agreement, etc.)；
6. risk management、Anti-Money Laundering and Counter-Terrorism Financing Compliance Documents；
7. Resumes and compliance experience certificates of directors and key personnel；
8. Technology and security solutions (multi-signature、Private key management、Contract audit, etc.)。

Difficulties in applying for a stablecoin license in Hong Kong

1. Eligibility：Do directors and senior management have relevant knowledge?、Educational qualifications and experience；
2. financial soundness：Whether the minimum paid-in capital and continued operating capabilities required by regulations are maintained；
3. reserve assets：Does it comply with 100% Full coverage，and be held in custody by a qualified bank；
4. Risk and Compliance：Whether to establish a sound KYC / AML system and customer asset isolation mechanism；
5. public interest：Will licensing have an impact on financial stability or market order?。

Frequently Asked Questions about Hong Kong Stablecoin License

One question：Is a license required to issue stablecoins in Hong Kong?

answer：need。Stable currency business refers to assets anchored in legal currency，Distribution in Hong Kong、redemption、promotion、Reserve management and other activities。

Second question：Who can submit an application on behalf of a company? answer：Must be a director of the company、Submitted by senior management or duly authorized compliance officer。

Three questions：What is the general procedure for applying for a license?

answer：

1. Prepare application documents and supplementary information；
2. Submit application to the Hong Kong Monetary Authority and conduct preliminary communication；
3. The HKMA reviews and arranges compliance interviews；
4. After approval, enter the announcement process，Stablecoin license officially issued。

Four questions：Is it necessary to stay in Hong Kong during the application period?

answer：Not mandatory，However, a permanent team is required in Hong Kong，and cooperate with the HKMA’s inquiries and meetings at any time.。

Five questions：What basic conditions do applicants need to meet?

answer：
Establish a company in Hong Kong and have substantial operations；
maintain no less than 2,500 HK$10,000 paid-in capital；
Reserve assets must 100% Fully supported and hosted by Hong Kong banks；
Establish KYC / AML / CFT system；
Management has financial and compliance experience and is based in Hong Kong。

Six questions：What do you get after your license is approved?

answer：The company will be included in the list of licensed institutions announced by the Hong Kong Monetary Authority，Obtain legal business rights and market trust。

Seven questions：How long does it take to apply?

answer：Typically takes 3–6 months，Subject to the completeness of application documents and review by the Hong Kong Monetary Authority。

Eight questions：What are the arrangements for license renewal?

answer：The license is usually valid for 12 months，You must apply for renewal three months before expiration，and submit annual audit and compliance reports。

To apply，Please contact Youyou Business

1. Rich experience：Our team members have worked in Hong Kong financial regulators or large financial institutions，Deep understandingbrass bureauandSecurities Regulatory Commissionregulatory framework and approval process，Able to accurately identify risks and develop efficient compliance plans。
2. ongoing support：Except for agency application，We can provide ongoing compliance advisory services based on client needs，Including serving as Responsible Officers or Compliance Officers，Ensure that daily operations after license approval comply with regulatory requirements。
3. Integrated service：Communication from Regulatory、Data preparation、Custody bank connection，to daily compliance operations，We provide full process agency。
4. resource network：We cooperate with many local banks in Hong Kong、International audit institutions and law firms have established solid cooperative relationships，Can efficiently assist customers in handling hosting、Audit and legal affairs。
5. Save time and effort：through professional services，Reduce round-trip replacement parts，Reduce ongoing compliance costs，Allow customers to focus more on business development。