The Hong Kong Monetary Authority (HKMA) has finalized new rules for companies that issue stablecoins, digital tokens tied to fiat currencies.
Starting August 1, these guidelines will apply to firms seeking to operate legally within the city.
The new framework outlines the monitoring process for issuers and the steps they must take to prevent money laundering and terrorist financing.
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To support this effort, the HKMA will launch a public list of licensed stablecoin issuers. This online registry is meant to help the public verify whether a company is officially approved.
The HKMA has warned people to be cautious of any business claiming they are already licensed or in the process of being approved. It stressed that holding stablecoins from unlicensed issuers comes with personal risk.
Eddie Yue, the HKMA’s Chief Executive, commented that the recent attention around stablecoins has led to trading levels and stock activity that seem out of proportion.
He said that many companies applying for licenses either failed to present clear, realistic plans or lacked the necessary technical skills to operate such systems. Because of this, the regulator plans to issue only a few licenses at the start.
The HKMA has asked interested companies to get in touch by August 1, when the rules take effect. Those hoping to be part of the first batch must send in their full applications by September 30.
Recently, South Korea’s major political parties introduced separate plans for regulating won-based stablecoins. What does each proposal include? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
