A naukri.com initiative
99Bitcoins
2w
353
Hong Kong’s Financial Secretary Confirms Stablecoin Licenses to Roll Out Starting August
- Hong Kong's stablecoin ordinance will be effective from 1 August 2025, making it the first regulated regime for stablecoins.
- Entities issuing fiat-referenced stablecoins in Hong Kong must obtain licenses from HKMA.
- Only licensed institutions can offer stablecoins to retail investors to protect the public and investors.
- Ads for stablecoins are restricted to licensed issuers to prevent fraudulent behavior.
- Hong Kong will serve as a testing ground for China's financial innovation and Yuan-pegged stablecoins.
- The city's offshore Yuan liquidity pool is around 1 trillion Yuan, supporting its role as a sandbox.
- Licensing requirements by HKMA focus on reserve asset management and stabilisation mechanisms.
- Provisions in the ordinance ensure stablecoin holders can redeem tokens at par value under fair conditions.
- Several companies have applied to HKMA to become qualified stablecoin issuers.
- Companies like Reitar Logtec, Ant Group, and JD Coinlink are in the process of securing licenses.
- Tech giants in the US are exploring stablecoin integration for cross-border payments.
- China faces challenges in internationalizing the Yuan due to concerns over debt and capital flows.
- Analysts suggest structural reforms to restore confidence in the Chinese Yuan for internationalization.
- China banned crypto transactions in 2021 but is now exploring CBDCs and stablecoins for payment systems.
- Governor Pan Gongsheng confirmed technology's role in advancing CBDCs and stablecoins for cross-border transactions.
Read Full Article
21 Likes
For uninterrupted reading, download the app