Hong Kong regulator targets March for first stablecoin licences


FILE PHOTO: A representation of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration//File Photo

HONG KONG: The Hong Kong Monetary Authority Chief Executive Eddie Yue said on Monday the regulator expects to issue its first batch of stablecoin issuer licences in March, with only a "very small number" to be granted initially.

Addressing a Legislative Council meeting, Yue noted that the review process for applications is nearing completion.

At a subsequent media briefing, he highlighted that assessments are focusing on areas including use cases, risk management, anti-money laundering measures, and the backing assets of the stablecoins.

Licensed issuers must comply with local regulations for cross-border activities. Mutual recognition arrangements with other jurisdictions could be explored in the future, he added. - Reuters

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