Hong Konghas taken a significant step to regulate the stablecoin industry, proposing a legal framework that would require stablecoin issuers to obtain a license within the city.
Hong Kong Proposes Licensing Requirement for Stablecoin Issuers
The proposal, jointly published by the Hong Kong Monetary Authority (HKMA) and the Bureau of Financial Services and Treasury, outlines key requirements for stablecoin issuers operating in Hong Kong.
Under the proposed regulatory system, a stablecoin issuer would need to obtain a license from the HKMA if it issues a stablecoin referencing the value of one or more fiat currencies in Hong Kong.
The licensing requirement aims to bring stability and oversight to the growing stablecoin market.
To qualify for a license, a stablecoin issuer must be locally incorporated, have a governance presence, and establish an effective stabilization mechanism.
This involves maintaining a pool of high-quality, highly liquid reserve assets through appropriate custody arrangements.
The proposal emphasizes that only stablecoins issued by licensed entities will be allowed to be offered to retail investors.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!