The Hong Kong Monetary Authority has announced a set of requirements for firms seeking licenses to issue stablecoins, highlighting the region's commitment to developing the cryptocurrency industry.
Requirements for Stablecoin Issuers
According to the Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, applicants for a stablecoin issuer license will need to meet several requirements. Key among these is a capital reserve of at least 25 million Hong Kong dollars (HKD) and evidence of reserve management capabilities.
Participation in the Sandbox Program
So far, more than 40 applications are part of Hong Kong's stablecoin sandbox program, including companies like JD CoinChain Technology and a consortium of Ant Group, Standard Chartered, and Hong Kong Telecom. Participation in the sandbox is not mandatory for licensing but allows for testing business models in a controlled environment.
Licensing Plans and Conditions
Yue stated that only a handful of licenses will be granted in the initial phase. Applicants will need to present realistic business plans and demonstrate practical applications. They must also have compliance systems, including anti-money laundering mechanisms.
These requirements aim to enhance transparency and reliability in the stablecoin sector in Hong Kong, potentially fostering the growth of the crypto industry in the region.
