May 30 news, Hong Kong's "Stablecoin Regulation" was officially published on May 30, marking its formal enactment as law, expected to take effect within this year.

The regulation establishes a licensing system for issuers of "fiat-backed stablecoins," allowing only licensed institutions to issue or sell stablecoins pegged to the value of the Hong Kong dollar, aimed at enhancing protection for the public and investors.

The Hong Kong Monetary Authority stated that the regulation establishes a risk-based, pragmatic, and flexible regulatory mechanism to provide institutional support for the healthy and sustainable development of stablecoins and digital assets.

The regulation clearly stipulates that applicants must meet compliance requirements, including reserve asset management, value stabilization mechanisms, redemption arrangements, and anti-money laundering.

#Stablecoin