Hong Kong targets first stablecoin licenses this year

Hong Kong plans to issue the first batch of stablecoin licenses within the year, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

As the stablecoin law comes into effect on August 1, the Hong Kong Monetary Authority will consult the market on the implementation of the guidelines of the Ordinance and will publish the guidelines within this month, which will cover anti-money laundering and other related requirements, said Hui at an interview with a local media. 

Hui also pointed out that the target is to issue licenses within this year, but believed that the number of licenses will be “single digit”, and emphasized that cryptocurrency pegged with certain fiat money now is not a tool or means of speculation.

Hui added that he hoped that stablecoins would focus on dealing with the difficulties and pain points in the real economy, such as cross-border payments, which would be challenging especially when the risk of "local currency" is higher or the local financial system is not so well developed. 

He mentioned that stablecoin, as an effective payment tool, can facilitate cross-border transactions and reduce the transaction costs involved.

STAFF REPORTER