According to BlockBeats, the Hong Kong Special Administrative Region Government announced that the Stablecoin Ordinance will take effect on August 1, marking the establishment of the world's first comprehensive regulatory framework for fiat-backed stablecoins.
Hong Kong Monetary Authority (HKMA) Chief Executive Yu Weiwen recently highlighted the high entry barriers for licensing, considering the emerging nature of stablecoins, associated risks, user protection, and market capacity for sustainable development. Initially, only a limited number of licenses will be issued.
Yu emphasized that the stablecoin issuer sandbox program, initiated by the HKMA in 2024, is not a prerequisite for future stablecoin issuer license applications. Participation in the sandbox does not guarantee a license. The HKMA will carefully evaluate all applications based on consistent and stringent standards.
Applicants must present feasible business plans and practical application scenarios, with a focus on reserve management, compliance systems, and technical security. The initial batch of stablecoins will concentrate on cross-border trade and Web 3.0 applications.