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HKMA proposes licensing regime for stablecoin issuers



Hong Kong is consulting on a proposal to regulate stablecoin issuers, requiring them to be licensed for retail offerings. This initiative, acknowledging stablecoins’ importance in Web3 and virtual assets, aims to bridge traditional finance and virtual markets. The Hong Kong Monetary Authority (HKMA) would license issuers meeting specific conditions under new laws. The consultation ends on February 29, with no set implementation date yet. Proposed requirements include maintaining reserves equal to or exceeding circulating stablecoins and minimum capital of HKD25m or 2% of the stablecoins’ value. Existing issuers have a six-month transition period, with a three-month deadline for licence applications once regulations are active. The HKMA will assist potential issuers with a regulatory sandbox for compliance guidance.

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