Hong Kong’s rules for stablecoin issuers came into force on Friday as the government is pursuing its ambitions for the crypto sector.
The special administrative region of China has taken steps in recent years to strengthen its position in the industry on its way to realizing its goal of becoming a hub for Crypto and Web3 in Southeast Asia. It established a regulatory framework for crypto exchanges more than two years ago and began consulting about stablecoin rules in 2023.
The law that controls stableecoins, which are cryptocurrencies whose value is linked to a real asset as dollar adopted in May. Applications for licenses can be submitted from now on the next three months, according to Hong Monetary Authority (HKMA) Guidance published on Tuesday. Companies that have submitted an application will be allowed to proceed while their request is considered until January 31
While about 40 companies are reportedly waiting to apply for a stableecoin license last month, it is unlikely to be successful. The market has become “too excited,” HKMA CEO Eddie Yue wrote last month. The regulator is likely to approve fewer than 10.
