Hong Kong officially enacts Stablecoin Bill introducing an 'issuance license system'
Summary
- Hong Kong has officially announced the implementation of a legal framework mandating the acquisition of a Hong Kong Monetary Authority license for the issuance of stablecoins linked to fiat currency.
- The new bill imposes strict regulations and supervision on asset management, maintenance of pegging mechanisms, and redemption obligations.
- It also sets forth various requirements for investor protection, including anti-money laundering (AML) and risk management.
Hong Kong has officially introduced a regulatory framework for the issuance of fiat-backed stablecoins. To issue such tokens, obtaining a license from the Hong Kong Monetary Authority (HKMA) is mandatory, and issuers must strictly comply with requirements such as asset management and anti-money laundering.
According to CCTV on the 1st, the Hong Kong government officially implemented the 'Stablecoin Bill' starting today. This bill establishes a formal licensing regime for stablecoin issuers and strengthens the regulatory system covering all virtual asset activities.
Under the bill, any entity wishing to issue fiat-backed stablecoins within Hong Kong or to issue stablecoins claiming to be pegged to the Hong Kong Dollar (HKD) either inside or outside Hong Kong, must obtain a license from the Hong Kong Monetary Authority.
Licensed issuers must meet a series of requirements such as ▲segregation of client assets ▲maintenance of a stable pegging mechanism ▲fulfillment of redemption obligations under normal conditions. Additional requirements include anti-money laundering (AML) and counter-financing of terrorism (CFT) measures, risk management, information disclosure, accounting audits, and eligibility criteria for executives.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
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