The Hong Kong Monetary Authority (HKMA) released guidelines on Tuesday for stablecoin issuers wanting to comply with its upcoming licensing regime for the sector.
The final guidance covered rules on money laundering, reserve assets management and issuance. It also included transitional measures for issuers of existing stablecoins. Stablecoins are digital assets that are pegged to other assets like fiat currency.
HKMA’s stablecoin regime is set to take effect on Friday and a bill on rules for the sector was passed in May. Already 40 firms are waiting to apply for a stablecoin license, though the regulator is reportedly expected to approve less than 10 applications initially. HKMA’s CEO Eddie Yue last week warned companies to not be overly excited about the coming regulatory regime, particularly if their business is not related to stablecoins.
The regulator encouraged firms to apply by August 31 so that it can convey its supervisory expectations, the HKMA’s press release said.