The first batch of Hong Kong stablecoin issuer licences is expected to be granted early next year, the Hong Kong Monetary Authority (HKMA) told a media briefing on Tuesday.
Hong Kong's stablecoin bill is set to take effect on August 1.
The market had earlier expected that the first batch of issuer licences might be issued within this year, but Tuesday's comments showed the city's de facto central bank's cautious stance.
Darryl Chan, deputy chief executive of HKMA, emphasized that only "a handful" of licences will be granted for the first batch.
Investors piled into crypto-related stocks in Hong Kong since the city passed stablecoin bill in May to boost its status as a global digital asset hub.
Shares of Guotai Junan International (1788.HK) have surged 450% after the broker said it obtained regulatory approval in Hong Kong to offer cryptocurrencies trading services last month.
HKMA has been actively flagging risks around the growing frothiness of the market around stablecoins most recently.
In a statement on Tuesday, HKMA reminded market participants "to exercise due caution in their public communications, as well as refrain from making statements that could be misinterpreted or create unrealistic expectations."
It said that no stablecoin licence has been issued by the HKMA as of Tuesday.
HKMA suggested interested institutions to apply for a licence before August 31 to receive feedback from the regulator.
Institutions that have so far spoken with the HKMA are mostly exploring HKD- and USD-pegged stablecoins, Chan said.
He added stablecoins backed by offshore yuan will still need to clearly specify their use cases and the assets used as reserves.
