Companies looking to publish Stablecoins should stifle enthusiasm, especially when Hong Kong Monetary Authority (HKMA) CEO Eddie Yue writes for a blog post on a central bank website.
Some companies that do not have a business related to Stablecoins (tokens of value in other assets such as Fiat Currencies) or digital assets have announced their intention to develop a Stablecoin business. As a result, “share prices have risen, stock trading volumes have increased, and the company’s reputation has improved significantly,” Yue said in a post Wednesday.
“Recent heated speculation about the concept of Stablecoin has made the market overly excited,” he writes.
Financial regulator Cooling Paper is expected to begin licenses for Stablecoin issuers from August 1st, after passing Stablecoin Bill in May. 40 companies are planning to apply to the administration, but HKMA could approve below 10.
“In fact, we have made it clear at best that a small number of Stablecoin licenses will be approved at the very beginning,” Yue said. “In other words, there are a lot of disappointed people.”
After the Stablecoin bill passed, regulators sought opinions on the implementation of regulations and money laundering guidelines, which are expected to be made public by the end of July.
Stablecoins’ market capitalization rose to more than $269 billion after signing the US Genius Stablecoin bill last week, according to Coingecko data.
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