The Hong Kong Monetary Authority (HKMA) has officially rolled out its regulatory framework for stablecoin issuers, marking a major step in the city’s effort to regulate digital assets.
The new rules will take effect on August 1, according to documents released Tuesday by the city’s de facto central bank.
The framework includes two key guidelines: one on the licensing and oversight of stablecoin issuers and another focused on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) compliance. These measures aim to bring greater transparency and structure to Hong Kong’s fast-evolving crypto environment.
As part of the new regime, the HKMA will launch a public registry listing all licensed stablecoin issuers. However, the regulator stressed that no licenses have been issued yet and urged the public to be cautious of individuals or companies claiming to be licensed or even in the process of applying.
“As of today, no licensce has been issued by the HKMA,”
the HKMA stated, warning that those who hold or invest in stablecoins not authorized under the new framework do so at their own risk.
HKMA Chief Executive Eddie Yue addressed recent concerns over the speculative buzz surrounding stablecoins, calling it a “market frenzy.” He said that many of the current applicants for stablecoin licenses have submitted vague or underdeveloped proposals and often lack the technical competence required for such operations. Yue emphasized that only a limited number of licenses will be issued in the early stages of the rollout.
The regulator has urged interested applicants to initiate contact with the HKMA by August 1, with full submissions due by September 30 to be considered in the first wave of license approvals.
Additionally, starting August 1, Hong Kong will enforce its new Stablecoin Ordinance, making it a criminal offence to offer or promote fiat-referenced stablecoins (FRS) to retail investors without a license.
Meanwhile, authorities across the border are confronting a growing number of scams disguised as stablecoin or crypto investment opportunities. On July 7, officials in Shenzhen issued a public warning about fraudulent schemes using stablecoins as a front to lure unsuspecting investors.
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