Hong Kong has officially launched its long-awaited stablecoin licensing regime, setting high regulatory standards for issuers.
Reserve Requirements for Stablecoins
Under this new framework, stablecoin issuers must maintain 100% reserve backing, ensuring that every token in circulation is fully supported by real-world assets.
Disclosure Obligations
Alongside reserve requirements, the regime also includes strict disclosure obligations. Stablecoin issuers must regularly publish audits and details of reserve assets. These measures are designed to build user confidence and prevent the kinds of collapses seen in unregulated crypto environments.
Hong Kong's Strategy to Become a Crypto Hub
This licensing regime is part of Hong Kong’s broader strategy to become a leading global crypto hub. The city’s approach balances investor protection with openness to innovation, hoping to attract high-quality crypto firms.
Such measures could set a global precedent as more countries look to regulate digital assets.
