🇭🇰 REGULATORY UPDATE: HONG KONG TAKES LEAD IN STABLECOIN OVERSIGHT
The HKMA's new stablecoin regulatory regime (effective mid-2024) mandates licensing for fiat-referenced stablecoin (FRS) issuers conducting activities in or targeting Hong Kong.
Key Requirements ↓
📜 Mandatory Licensing under a risk-based regime.
💵 100% Reserve Backing in high-quality liquid fiat assets.
🔁 Redemption at Par: Stablecoins must be redeemable 1:1 with fiat.
🧾 Audit & Disclosure: Issuers must publish regular reserve attestations.
🛡️ Governance & AML: Full compliance with anti-money laundering and risk management standards.
Hong Kong is positioning itself as a regulated digital asset hub, attracting Web3 initiatives and institutional interest. The framework sets a regulatory benchmark in Asia, particularly for USDC, USDT, and HKD-linked stablecoins.
HKMA to open license applications soon. Issuers and VASPs should align with the new framework by early 2024 to operate legally.
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