TLDR
- The Hong Kong Monetary Authority has finalized its stablecoin rules which will take effect on August 1.
- Two sets of guidelines have been released covering regulatory supervision and AML and CTF obligations for stablecoin issuers.
- A public registry of licensed stablecoin issuers will be available on the HKMA website starting August 1.
- The HKMA has not issued any stablecoin licenses yet and warned against false claims of licensing.
- Stablecoin license applicants must submit complete applications by September 30 to be considered in the first round.
The Hong Kong Monetary Authority (HKMA) has finalized its stablecoin rules, setting clear regulatory standards for licensed issuers. These new rules, effective August 1, aim to establish transparency and control within the local digital asset market. Alongside the regulations, a public registry will help verify licensed stablecoin issuers operating under HKMA oversight.
Stablecoin Rules Set to Strengthen Oversight and Licensing
The HKMA released two finalized guidelines covering regulatory supervision and Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) obligations. These stablecoin rules outline the responsibilities for licensed issuers to meet strict compliance standards. The HKMA stressed that unlicensed stablecoins remain outside official protection.
The regulatory authority stated that it has not granted any stablecoin licenses yet. Moreover, it cautioned the public against entities falsely claiming to be licensed or under application. Issuers must submit full applications by September 30 to be considered for initial licensing.
The stablecoin rules are part of Hong Kong’s broader strategy to regulate the digital asset space. With this move, the HKMA seeks to reduce the financial risks posed by unregulated virtual asset activity. To qualify, all applications must demonstrate technical expertise and solid implementation plans.
Public Registry to List Licensed Stablecoin Issuers
From August 1 onwards, the HKMA will publish a public registry of licensed stablecoin issuers on its official website. This registry will enable users to verify which entities meet the newly established stablecoin rules. The measure is intended to improve market transparency and prevent fraudulent claims.
The regulator confirmed that only entities meeting the licensing criteria will appear on the register. Any issuer not listed should be assumed unlicensed and operating without HKMA approval. Authorities emphasized that licensed issuers must comply fully with operational, legal, and financial standards.
Public access to the register is part of Hong Kong’s effort to strengthen user protection. This initiative ensures the public can check stablecoin providers’ licensing status before transacting. As a result, transparency and regulatory compliance will be central to stablecoin circulation.
Unqualified Applications Rejected Under New Framework
HKMA Chief Executive Eddie Yue stated that many applicants lack the qualifications required under the new stablecoin rules. Some applications lacked technical depth, while others offered unrealistic operational plans. Consequently, the HKMA plans to issue only a limited number of licenses at first.
Yue said the regulator will maintain strict requirements for those applying. Stablecoin issuers must present clear and actionable business models for approval. Those without robust structures or teams will not receive licenses.
Scams involving stablecoin investments have been rising in other parts of China, especially in Shenzhen. Local authorities warned residents about illegal entities promoting fraudulent crypto-related investments.
