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Hong Kong opens the door for stablecoin issuers with new licenses

The Hong Kong Financial Authority (HKMA) has invited stablecoin issuers to start making use of for licenses as the town’s stablecoin rules are enacted in August.

In a press release launched on July 29, the HKMA mentioned corporations can submit preliminary purposes by Aug. 31.

This early stage is designed to assist candidates perceive regulatory expectations and obtain suggestions earlier than formal submissions are due.

In the meantime, firms that meet the mandatory circumstances should submit full purposes by Sept. 30.

Darryl Chan, the HKMA’s Deputy Chief Govt, reportedly mentioned the regulator plans to difficulty solely a restricted variety of licenses within the preliminary rollout, probably beginning in 2026.

This transfer places Hong Kong in keeping with different main jurisdictions working to manage stablecoins. Within the European Union, a number of firms have already been authorised below the MiCA framework.

In the meantime, stablecoin suppliers within the US are adjusting to necessities launched below the lately handed GENIUS Act.

Hong Kong’s rules

Hong Kong’s new stablecoin framework requires these cryptocurrencies to be totally backed by high-quality, liquid belongings. The reserve requirement protects customers and ensures monetary stability because the digital asset market expands.

The HKMA additionally cautioned market members in opposition to making deceptive public claims. The monetary regulator pressured that the brand new legislation criminalizes false illustration of oneself as a licensed issuer or an applicant.

HKMA pressured that any such misstatement may appeal to authorized penalties.

To assist the general public determine respectable operators, the HKMA will publish a listing of licensed stablecoin issuers on its web site. Till then, the regulator suggested customers to be cautious of any agency or particular person claiming to be licensed or making use of for a license.

It added that no licenses have been granted but, and any public claims on the contrary needs to be handled with skepticism.

The regulator additionally cautioned customers that holding or transacting with unlicensed stablecoins will likely be performed at their very own danger.

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