The Hong Kong Stablecoin Regulatory Guidelines will officially take effect on August 1. The Secretary for Financial Services and the Treasury, Xu Zhengyu, stated that the goal is to issue stablecoin licenses within this year, but the number of licenses issued will be in 'single digits'.
During an interview with Ming Pao on Monday, Xu Zhengyu pointed out that the Hong Kong Monetary Authority is currently consulting the market on the implementation of the Stablecoin Regulatory Guidelines, which are expected to be announced in July. The specifics will involve anti-money laundering and other related requirements. He expressed hope that after the Stablecoin Regulatory Guidelines are implemented, they will receive license applications. The goal of the Hong Kong authorities is to issue licenses within this year.
It is reported that there are currently at least 9 institutions interested in or considering applying for a stablecoin license, including 3 groups participating in the Monetary Authority's stablecoin issuer sandbox (Standard Chartered Bank, Animoca Brands, Hong Kong Telecommunications, JD Coin Chain Technology (Hong Kong), and Round Coin Innovative Technology), and all 3 groups plan to issue Hong Kong Dollar stablecoins.
Xu Zhengyu mentioned: "We hope that the stablecoin will focus on addressing the challenges and pain points in the real economy, such as cross-border payments, especially those involving 'local currency' which carry higher risks, or when the local financial system is not very complete, there are certain challenges in conducting cross-border payments."
He further added: "However, if there are stablecoins based on fiat currency, as an effective payment tool, it can facilitate cross-border transactions and reduce transaction costs."
Although the upcoming Stablecoin Regulatory Guidelines and the sandbox for stablecoin issuers were initially designed for the 'Hong Kong Dollar Stablecoin', there have recently been operators planning to issue offshore Renminbi stablecoins, such as China's e-commerce giant JD.com and Ant Group, a fintech giant under Alibaba, which are reportedly actively lobbying the People's Bank of China (PBoC) to obtain authorization to issue 'offshore Renminbi' stablecoins in Hong Kong.
In this regard, Xu Zhengyu also mentioned: "If it involves the currency of a jurisdiction, we must discuss with the relevant institutions."
He pointed out that although the current laws do not specify whether stablecoins pegged to specific currencies can be issued, as long as it is permissible under the fiat currency laws, if it involves currencies from other jurisdictions, the impact on local exchange rates and various risks must be considered as a whole.
"Hong Kong is expected to issue the 'first wave of stablecoin licenses' this year! Can it be pegged to the Renminbi? Xu Zhengyu: To be discussed" This article was first published on (Block客).