The rules regarding Hong Kong’s stubcoin issuers came into effect on Friday as the government pursues its ambitions for the crypto sector.
China’s specially managed regions have taken steps in recent years to strengthen its industry position to realize its goal of becoming a hub for Crypto and Web3 in Southeast Asia. We established a regulatory framework for crypto exchanges over two years ago, and began consultations on the Stablecoin rules in 2023.
The law governing Stablecoins is a cryptocurrency whose value is fixed to real-world assets such as dollars, and was passed in May. License applications can be submitted for the next three months, according to the Hong Monetary Authority (HKMA) guidance published Tuesday. Companies that submit their applications will be allowed to continue until January 31st while the request is being considered.
It is reported that around 40 companies were waiting to apply for Stablecoin licenses last month, but many are unlikely to succeed. HKMA CEO Eddie Yue wrote last month that the market is “overly excited.” Regulators may approve less than 10.
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