Hong Kong's stablecoin ordinance to commence operation in August

The commencement date for the Stablecoins Ordinance has been set to August 1, the government announced. 

The ordinance, which was gazetted on May 30, is to supervise activities involving stablecoins, and to introduce a licensing regime for regulated stablecoin activities in Hong Kong. 

After the ordinance commences operation, the licensing regime will provide suitable guardrails for relevant stablecoin activities, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu. 

“It will be a milestone in facilitating the sustainable development of the stablecoin and digital asset ecosystem in Hong Kong," he said.

The Hong Kong Monetary Authority has also launched a consultation on the detailed regulatory requirements of the regime, including provisions related to anti-money laundering and the counter-financing of terrorism.

The new rules will be tabled before the Legislative Council on June 11 for negative vetting.

STAFF REPORTER