Hong Kong Releases Guidance on Rules for Stablecoin Issuers

robot
Abstract generation in progress

The Hong Kong Monetary Authority (HKMA) released guidelines on Tuesday for stablecoin issuers wanting to comply with its upcoming licensing regime for the sector.

The final guidance covered rules on money laundering, reserve assets management and issuance. It also included transitional measures for issuers of existing stablecoins. Stablecoins are digital assets that are pegged to other assets like fiat currency.

HKMA's stablecoin regime is set to take effect on Friday and a bill on rules for the sector was passed in May. Already 40 firms are waiting to apply for a stablecoin license, though the regulator is reportedly expected to approve less than 10 applications initially. HKMA's CEO Eddie Yue last week warned companies to not be overly excited about the coming regulatory regime, particularly if their business is not related to stablecoins.

The regulator encouraged firms to apply by August 31 so that it can convey its supervisory expectations, the HKMA's press release said.

View Comments

NOT-0.86%
MAY-0.13%
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)