Hong Kong Regulator Plans Licensing Regime for Stablecoin Firms

(Bloomberg) — Hong Kong intends to introduce a licensing regime for stablecoin issuers whose tokens track the price of fiat currencies, the city’s de facto central bank said on Wednesday.

Under the proposed regime, issuers of these stablecoins will need to obtain a license from the Hong Kong Monetary Authority (HKMA), the local watchdog said in a joint statement with the Financial Services and the Treasury Bureau (FSTB) outlining the conclusions of a consultation. To ensure stablecoins are fully backed, issuers will need to publish monthly proof of reserve assets, which will be provided by a third-party auditor.