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Key with you:
- Hong Kong license regime for Stablecoin issuers begins 1 August, with limited approval expected in the initial phase.
- Applicants must demonstrate detailed control systems, including asset security and AML observance, and to prove their ability to operate across jurisdictions.
- HKMA refers to global regulatory frameworks, including FSB instructions, and the structuring of its supervision approach.
Hong Kong Eddie Yue CEO (HKMA) Eddie Yue outlined new expectations for Stablecoin issuers as part of the upcoming license regime declaration Posted 20 June.
The Regulation on the establishment of the framework approved by the Legislative Council in May will enter into force on 1 August.
Hong Kong to limit the Stablecoin license
“License holders must work cautiously and sustainable,” Yue said. “Building trust with market participants will be essential.”
Applicants must prove that they have strong reserve controls, price stability, asset protection and anti -filled money and are ready to follow the rules where their stablecoins are used.
In terms of supervision, Yue said HKMA would align with international standards and reference to the work led by the Council of Financial Stability (FSB). He also noted that Stablecoins carry features that increase cross -border and anonymity related to risks, which requires ongoing international coordination.
“Because Stablecoins They are an developing product, publishing involves inherent risks, reflections on user protection and concerns about market capacity. As such, the license mode will have a relatively high entry bar, ”Yue said.
“We assume that we will only issue a limited number of licenses during the initial phase,” he said.
Global Framework and Pressure to Comply with Regulations
Yue reiterated that stablecoins are not intended to function as investment tools. Instead, they are one of several digital settlement options along with the digital currencies of the central bank and tokenized deposits.
The statement also confirmed that participation in the Quarantine of HKMA is not a request for the request or warranty of license approval. All applicants will be evaluated according to the same regulatory criteria.
While the Regulation lays down the initial supervision structure in Hong Kong, Yue said that future modifications will consider the market capacity and user protection needs. He added that the licensing regime would be forced to “strictness and caution”.
How stablecoins will work with CBDC and the tokens issued by banks remain unresolved. Authorities still evaluate legal status, interoperability and potential risks across systems with different regulatory models.
Frequently asked questions (FAQ)
Could stablecoins be used for payments in different regulatory zones?
Yes, but issuers must prove compliance with local regulations where their tokens are orbited, which is necessary legal and operational preparation.
What are the common reserve models used by Stablecoin publishers?
Issuers can hold reserves in the currency of Fiat, short -term government bonds or other low -propelled assets. The composition and care of these reserves affect the stability, transparency and reliability of redemption.
How do stablecoin confidence affects the redemption mechanisms?
Clear and timely redemption processes are central to users’ trust. Delays or opaque procedures may lead to price instability or loss of PEG, especially during the period of stress.
Contribution Hong Kong sets up a high molding for Stablecoin issuers before August He appeared for the first time Cryptonews.
