Companies that want to issue stablecoins should empty their enthusiasm, especially when their most important business is not related to digital assets, Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, wrote in a blog post on the Central Bank’s website.
Some companies that do not have a company related to stableecoins – tokens whose value is linked to other assets, such as Fiat currency – or digital assets have announced their intention to develop a stableecoin business. As a result, “stock prices have risen, stock trading volume has risen and the company’s reputation has also been much improved,” Yue said in the Wednesday post.
“With the recent warm speculation about the stableecoin concept, the market has become too excited,” he wrote.
The financial regulator’s refrigerator is coming as it is set to start licensing of stablecoin issuers from August 1 after adopting a stablecoin bill in May. While 40 companies are set to apply for the regime, HKMA is likely to approve fewer than 10.
“In fact, we have made it clear in the past that a maximum of a few stableecoin licenses will be approved in the initial step,” Yue said. “In other words, there are many disappointed people.”
Following the passage of StableCein -Bill proposal, the regulator sought statements on the implementation of its regulation and guidelines for money laundering, something that it plans to publish in late July, he added.
The market value of stableecoins increased to more than $ 269 billion, according to CoingeCKO data, following the signing of the US Genius StableCOin Law proposal last week.
