Hong Kong Proposes Licensing Regime for Stablecoin Issuers

Hong Kong's financial regulators have released proposals for a licensing regime and regulatory sandbox to supervise stablecoin issuers and provide guidance on compliance. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are seeking feedback on the proposals until Feb. 29. The regime will require issuers who meet certain conditions to obtain a license from the HKMA, and firms looking to issue a fiat-referenced stablecoin in Hong Kong or market stablecoins to the Hong Kong public will need a license to operate. The move is part of Hong Kong's efforts to position itself as a regional crypto hub and follows the implementation of a licensing regime for crypto service providers in June.