Hong Kong to oblige stablecoin issuers to obtain license — consultation paper
The criteria for obtaining an HKMA license will include full backing of all circulating stablecoins with reserves “at least equal to the par value.”
Hong Kong has proposed it will accept and regulate fiat-referenced stablecoins (FRS), but issuers will be obliged to obtain a specific local license.
This is one of the main points of a consultation paper published on Dec. 27 by the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA).
The consultation period ends on Feb. 29, 2024. The legislation proposal spells out the definition of fiat-referenced stablecoins and requires any companies that “actively market their issuance of FRS to the public of Hong Kong” to be licensed by the HKMA.
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