Editor's PiCK
Hong Kong to Introduce Stablecoin Issuance Licensing System Starting in August
Summary
- It was reported that Hong Kong will officially implement a stablecoin issuance licensing system starting August 1.
- The issuance license will be granted preferentially to a select group of prepared issuers, with technical and legal operational capacity as a key standard, it was stated.
- The new regime introduces high entry barriers aimed at managing market risks and ensuring ecosystem security.
Hong Kong will officially implement a licensing system for stablecoin issuance starting August 1.
On the 28th (local time), virtual asset (cryptocurrency) specialist media Catena Investors reported, "The stablecoin licensing system in Hong Kong will begin on August 1. The number of approvals is expected to be limited."
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), said, "The new (stablecoin) licenses will initially be granted to a limited number of prepared issuers," and added, "We will prioritize the practical utility of stablecoins and issuers' technical and legal operational capabilities as core criteria."
He further noted, "Stablecoins have inherent market risks and structural vulnerabilities, and establishing a relationship with central bank digital currency (CBDC) or bank-issued tokenized deposits remains a challenge."
The media added, "This licensing regime is expected to become the first step towards a sustainable and secure stablecoin ecosystem, by establishing high entry barriers."
Minseung Kang
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