The Hong Kong Monetary Authority (HKMA) has completed its regulatory framework for stablecoin issuers, set to take effect from 1 August. The move marks a significant step in tightening oversight of the region’s crypto ecosystem. The HKMA also announced the creation of a public registry for licensed stablecoin issuers to boost transparency and safeguard investors.
Two Sets of Guidelines Released
On Tuesday, the HKMA released two key documents: one outlining supervisory standards for licensed stablecoin issuers and another focusing on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) requirements. These guidelines aim to ensure that only credible and technically capable issuers are allowed to operate in Hong Kong’s financial landscape.
The authority urged market participants planning to apply for a licence to initiate discussions with the HKMA by 1 August. Full applications must be submitted by 30 September to be considered in the first round of approvals.
Public Registry to Enhance Transparency
As part of the newly finalised framework, a public registry will be launched to list all licensed stablecoin issuers. The register will be hosted on the HKMA’s official website, offering the public a reliable source to verify authorised operators. The regulator emphasised that, as of now, no licences have been issued.
The HKMA warned the public against engaging with entities that claim to be licensed or in the process of obtaining a licence. “Members of the public who hold unlicensed stablecoins do so at their own risk,” the authority stated.
Regulator Warns Against Market Hype
HKMA Chief Executive Eddie Yue expressed concern over the current hype surrounding stablecoins, which he said has resulted in unjustified trading activity and inflated stock prices. He noted that some licence applications received were either too vague or lacked practical implementation strategies. Others failed to demonstrate the necessary technical competence.
To maintain high standards, only a limited number of licences will be granted initially. Yue advised investors to be cautious and avoid unlicensed stablecoin offerings to prevent legal and financial risks.
Shenzhen Issues Separate Warning
Meanwhile, authorities in Shenzhen have raised the alarm over rising crypto-related scams. On 7 July, the city’s task force on illicit financial activity warned the public about unlicensed groups promoting fraudulent stablecoin and crypto investments. These scams often exploit the general public’s limited understanding of stablecoins to market illegal financial products.
Officials stressed the need for public vigilance and encouraged individuals to verify the authenticity of any crypto-related offering before making an investment.
