Hong Kong’s Stablecoin Licensing Rules Take Effect for Issuers

Hong Kong's stablecoin regulations took effect recently as part of its strategy to strengthen the crypto sector. Key points include:

The government aims to establish Hong Kong as a crypto and Web3 hub in Southeast Asia.
A regulatory framework for crypto exchanges was introduced over two years ago.
Stablecoin legislation passed in May 2023.
Licenses can be applied for over the next three months, with applications being considered until January 31.
Approximately 40 firms are preparing to apply for licenses, but fewer than 10 approvals are expected, according to HKMA CEO Eddie Yue.