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The surge in applications for stablecoin licenses in Hong Kong may fade, with Bank of China Hong Kong potentially having an inherent advantage in issuance.
On August 3, according to reports, sources close to the applicants for Hong Kong's stablecoin licenses revealed that as regulatory guidelines are implemented, the enthusiasm for stablecoins in Hong Kong will wane, especially for non-financial institution applicants whose main application scenario is cross-border payments. They may actively choose to withdraw from early participation due to the difficulty in meeting the regulatory requirement of "verifying the identity of every coin holder." This also means that early favorites such as internet platforms like JD.com and Ant Group may find it difficult to appear on the list of the first batch of licensees.
In addition, CITIC Group, through its Hong Kong subsidiary, Xinyin International, has partnered with several institutions with the intention of applying for the first batch of stablecoin licenses. Industry insiders have stated that Bank of China Hong Kong is one of the three major note-issuing banks in Hong Kong, and if it issues stablecoins, it will have inherent advantages and can also reassure regulators in both regions.