Hong Kong’s rules for Stablecoin issuers entered on Friday as the government continues its ambitions for the cryptography sector.
The special administrative region of China has taken measures in recent years to strengthen its position in industry on the way to achieve its objective of becoming a center for crypto and web3 in Southeast Asia. He established a regulatory framework for crypto exchanges over two years ago and began to consult the Stablecoin rules in 2023.
The law governing stablecoins, which are cryptocurrencies whose value is fixed to a real asset such as the dollar, adopted in May. License requests can be submitted from now for the next three months, according to the Hong Monetary Authority (HKMA) Guide published Tuesday. Companies that have submitted a request will be authorized to continue while their request is examined until January 31.
While around forty companies are waiting to request a Stablecoin license last month, many will probably not be successful. The market became “too excited,” wrote HKMA CEO Eddie Yue last month. The regulator is likely to approve less than 10.
