Hong Kong may restrict initial stablecoin licensing to only 3-4 companies under the supervision of the HKMA.
The HKMA plays a main supervisory role and risk management under an agreement with the PBOC, while many Chinese banks in Hong Kong wish to participate in stablecoin issuance and custody.
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The HKMA will act as the main supervisory agency in stablecoin licensing, responsible for risk management.
Only 3-4 companies are expected to receive the initial stablecoin licenses in Hong Kong.
The People's Bank of China in Hong Kong and securities companies are actively engaged in the issuance and custody of stablecoins.
How will Hong Kong manage stablecoin licensing?
The HKMA is the main agency responsible for supervising and managing stablecoin risks in Hong Kong under an agreement with the PBOC. This affirms the importance of the HKMA in ensuring safety and regulatory compliance with stablecoin projects.
This occurs against the backdrop of increasing demand for legally operating stablecoins, requiring a dedicated agency with sufficient experience and authority to effectively manage the cryptocurrency-related financial market.
The HKMA's independent supervisory role helps mitigate legal and financial risks for investors and related organizations.
Why are only 3-4 companies receiving the initial stablecoin license?
According to Caixin, Hong Kong plans to narrow the initial stablecoin licensing scope down to only 3-4 companies. This aims to ensure quality control, capability, and strict compliance of stablecoin issuers.
The limited number allows the HKMA to focus on thorough supervision, protecting users and the financial system from instability risks. The selected companies are likely reputable and experienced in the cryptocurrency financial sector.
This move also reflects Hong Kong's cautious, professional approach and clear planning in developing the stablecoin market.
What role does the People's Bank of China in Hong Kong play in stablecoin operations?
Many branches of Chinese banks and securities companies in Hong Kong, such as Bank of China (Hong Kong), China Communications Bank (Hong Kong), China Construction Bank (Asia), CNCBI International, and Guotai Junan International, are actively involved in stablecoin issuance and custody.
Participating in this field helps banks expand modern financial services while contributing to the regulated cryptocurrency ecosystem. They provide infrastructure, ensure liquidity, and safety for stablecoin transactions.
This activity also helps promote the development of the cryptocurrency market in Hong Kong in a transparent and legal direction.
"The HKMA has recognized its leading role in supervising stablecoins to ensure safety and financial stability across the region."
Quoted from official sources, August 2023
What is the trend of public blockchain development in China?
Currently, China does not possess a globally influential public blockchain, making national infrastructure development a top priority.
Some opinions suggest that the construction of national-level public blockchains should be led by central state-owned enterprises to ensure security and control.
Meanwhile, industry-specific blockchains can be opened to market competition to increase efficiency and innovation.
Frequently Asked Questions
What role does the HKMA play in granting stablecoin licenses in Hong Kong?
The HKMA is the main regulatory agency responsible for supervising and controlling risks related to stablecoins under an agreement with the PBOC.
Why does Hong Kong only grant licenses to 3-4 companies for initial stablecoin issuance?
Limiting the number of licenses aims to enhance quality, compliance, and facilitate effective management, ensuring the sustainable development of the market.
How does the People's Bank of China participate in stablecoin in Hong Kong?
These banks provide stablecoin issuance and custody services, contributing to building a safe and transparent financial infrastructure.
Does China have a globally influential public blockchain?
Currently, there is none, but there are plans for development led by state-owned enterprises to enhance national strength in this area.
How is the industrial blockchain constructed in China?
Open to market competition, encouraging innovation and development in specialized fields.
Source: https://tintucbitcoin.com/stablecoin-hong-kong-han-che-cap-phep-dau/
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