Hong Kong says no stablecoin licenses issued yet, warns of legal risks for impostors

The Hong Kong Monetary Authority (HKMA) has invited stablecoin issuers to statesman applying for licenses arsenic the city’s stablecoin regulations are enacted successful August.

In a statement released connected July 29, the HKMA said funny firms tin taxable preliminary applications by Aug. 31.

This aboriginal signifier is designed to assistance applicants recognize regulatory expectations and person feedback earlier ceremonial submissions are due.

Meanwhile, companies that conscionable the indispensable conditions indispensable taxable implicit applications by Sept. 30.

Darryl Chan, the HKMA’s Deputy Chief Executive, reportedly said the regulator plans to contented lone a constricted fig of licenses successful the archetypal rollout, perchance starting successful 2026.

This determination puts Hong Kong successful measurement with different large jurisdictions moving to modulate stablecoins. In the European Union, respective companies person already been approved nether the MiCA framework.

Meanwhile, stablecoin providers successful the US are adjusting to requirements introduced nether the precocious passed GENIUS Act.

Hong Kong’s regulations

Hong Kong’s caller stablecoin framework requires these cryptocurrencies to beryllium afloat backed by high-quality, liquid assets. The reserve request protects consumers and ensures fiscal stableness arsenic the integer plus marketplace expands.

The HKMA besides cautioned marketplace participants against making misleading nationalist claims. The fiscal regulator stressed that the caller instrumentality criminalizes mendacious practice of oneself arsenic a licensed issuer oregon an applicant.

HKMA stressed that immoderate specified misstatement could pull ineligible consequences.

To assistance the nationalist place morganatic operators, the HKMA volition people a database of licensed stablecoin issuers connected its website. Until then, the regulator advised users to beryllium wary of immoderate steadfast oregon idiosyncratic claiming to beryllium licensed oregon applying for a license.

It added that nary licenses person been granted yet, and immoderate nationalist claims to the contrary should beryllium treated with skepticism.

The regulator besides cautioned users that holding oregon transacting with unlicensed stablecoins volition beryllium done astatine their ain risk.

The station Hong Kong says nary stablecoin licenses issued yet, warns of ineligible risks for impostors appeared archetypal connected CryptoSlate.