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Hong Kong Monetary Authority Chief Executive: The first batch of stablecoins will focus on cross-border trade and Web3 applications

ChainCatcher news, according to Hexun, the Hong Kong Special Administrative Region government published a notice in the Gazette on June 6, announcing that the "Stablecoin Regulation" will officially take effect on August 1, marking the implementation of the world's first comprehensive regulatory framework for fiat-backed stablecoins.Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue recently wrote that considering stablecoins are a relatively emerging product, the risks involved in issuance activities, user protection, as well as market capacity and long-term development, the licensing will have a relatively high threshold, and initially only a "small number of licenses" will be issued.Eddie Yue emphasized that entering the stablecoin issuer sandbox program launched by the HKMA in 2024 is not a prerequisite for future applications for stablecoin issuer licenses; on the other hand, even if an institution has entered the "sandbox," it does not guarantee that it will necessarily obtain a license. The HKMA will prudently consider all license applications according to consistent and strict standards.Eddie Yue clearly stated that applicants need to propose specific and feasible business plans and practical application scenarios, focusing on their reserve management capabilities, compliance systems, and technical security. The first batch of stablecoins will focus on cross-border trade and Web3.0 applications.
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