On June 25, according to Hexun Network, the Hong Kong Special Administrative Region government published an announcement in the Gazette on June 6, declaring that the "Stablecoin Regulation" will officially take effect on August 1, marking the establishment of the world's first comprehensive regulatory framework for fiat stablecoins.
Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), recently wrote that considering the relatively new nature of stablecoins, the risks involved in issuing business, user protection, market capacity, and long-term development, the licensing has a very high threshold, and only a small number of licenses will be issued initially.
Yue specifically emphasized that entering the HKMA's stablecoin issuer sandbox program in 2024 is not a prerequisite for future stablecoin issuer license applications; on the other hand, even institutions that have entered the "sandbox" do not necessarily mean they will obtain a license. The HKMA will carefully consider all license applications according to consistent and strict standards.
Yue clearly stated that applicants need to propose specific and feasible business plans and practical application scenarios, with a focus on examining their reserve management capabilities, compliance systems, and technical security. The first batch of stablecoins will focus on cross-border trade and Web3.0 applications.
