The Hong Kong Monetary Authority (HKMA) has unveiled guidelines for firms seeking stablecoin licenses ahead of a regulatory regime taking effect. With a bill passed in May, HKMA is encouraging companies interested in stablecoin issuance to apply by the end of August. The final guidance includes rules related to money laundering, management of reserve assets, and issuance protocols, alongside transitional measures for existing stablecoin issuers. Currently, around 40 firms are poised to apply for licenses, but initial approvals are expected for fewer than 10. HKMA's CEO, Eddie Yue, has cautioned companies to be mindful of the regulatory landscape, especially if their operations are not directly related to stablecoins. The new licensing framework seeks to enhance the regulatory oversight of this growing sector of digital assets, which are tethered to traditional assets like fiat currency.

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