HSBC and ICBC Try to Lasso Hong Kong Stablecoin Licenses – Who’ll Win?

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Key Takeaways

If you thought securing a Hong Kong stablecoin license was a walk in the park, bless your optimism. HSBC and ICBC are gunning for it like riverboats headed for a gold rush, but with the U.S. GENIUS Act puffing up American dominance, Hong Kong’s global ambitions are looking about as sturdy as a raft made of teacups. 😶‍🌫️

Picture this: HSBC and the Industrial and Commercial Bank of China (ICBC), two banking colossi, are about to elbow their way into Hong Kong’s bustling stablecoin rodeo. Yeehaw, or maybe just “ow”-depending on how strict the rules feel when they hit.

Hong Kong’s brand spanking new regulations have dropped, sharper than Aunt Polly’s tongue, and now both these behemoths are nudging the Hong Kong Monetary Authority for licenses. The system’s so tight-fisted, it could squeeze water from a stone and then charge you for it.

Early birds, tough worms

If the Hong Kong Economic Journal is to be believed-and why wouldn’t we-the ICBC subsidiary wants a piece of the pie, joining HSBC and Standard Chartered at the front of the buffet line.

By August’s end, a whopping seventy-seven institutions had hollered about joining the fun. The catch: Several institutions peeped over the regulatory fence and promptly winced; seems the standards are grimmer than a winter night camped on the Mississippi. 🌚

The HKMA isn’t handing out licenses like penny candy, either-just a handful in the first round. It’s got all the elegance of a bar brawl.

And here’s a doozy: Once the new Stablecoin Ordinance went live August 1st, Hong Kong stablecoin issuers watched their tokens tumble as much as 20% in a day. That’s what you call a “regulatory slapstick,” folks.

Mid-August delivered more drama, with Hong Kong’s Securities and Futures Commission (SFC) clamping down on crypto custody rules. Smart contracts in cold wallets? Outlawed faster than a river-boat gambler. SFC even wagged its finger at anyone daring to chase the hype. 👮‍♂️

And don’t go pawning unlicensed stablecoins on Main Street, unless you fancy a criminal record to go with your tokens. No one’s sneaking off with the silverware under this regime, let me tell you.

Can Hong Kong take Uncle Sam in the stablecoin showdown?

Thanks to the U.S. GENIUS Act in July 2025, American stablecoins are riding high with a single nationwide set of rules-sort of like everyone agreeing to poker night at the same saloon.

Europe weighed in with MiCA, and now the whole globe’s got their eyes trained on the regulatory flavor of the month.

With its “one law to rule them all,” the U.S. has made itself the biggest fish in this particular pond, leaving Hong Kong to paddle harder just to stay afloat. 🐟

But Hong Kong’s got its own knotted mess of challenges-political, economic, and otherwise. The race for top stablecoin dog is on, and unless Hong Kong swaps its careful tiptoeing for a pair of mud boots and a wild grin, it’ll be chasing the Americans and Europeans from somewhere near the caboose.

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2025-09-09 11:13