Hong Kong Monetary Authority sets bar high for stablecoin issuers

As Hong Kong's Stablecoins Ordinance will take effect on Friday, the Hong Kong Monetary Authority issued detailed regulatory guidelines for stablecoin issuers on Tuesday, emphasizing that it will adopt a cautious approach during the early stages of the virtual currency sector's development, and consider easing requirements over time based on market experience.

To streamline the licensing process, the HKMA said firms interested in issuing stablecoins in the city are encouraged to contact the regulator by Aug 31 for initial guidance. Those believing themselves well-prepared and aiming for an early start should submit applications no later than Sept 30.

Darryl Chan, deputy chief executive of the HKMA, said there's no specific target for the number of licenses to be issued in the first batch, but the regulatory bar is high.