HKMA Chief Executive: First Batch of Stablecoins to Focus on Cross-Border Trade and Web3 Applications

According to ChainCatcher, citing Hexun, the Hong Kong SAR government published an announcement in the Gazette on June 6, declaring that the "Stablecoin Ordinance" will officially take effect on August 1, marking the implementation of the world's first comprehensive regulatory framework for fiat-backed stablecoins.

Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, recently wrote that given stablecoins are a relatively new product, the risks involved in issuance, user protection, as well as the market’s capacity and long-term development, the licensing requirements are set at a high threshold, and only a "limited number of licenses" will be issued in the initial phase.

Yue specifically emphasized that participation in the stablecoin issuer sandbox program launched by the HKMA in 2024 is not a prerequisite for future stablecoin issuer license applications; on the other hand, institutions that have entered the "sandbox" are not guaranteed to receive a license. The HKMA will carefully consider all license applications according to consistent and stringent standards.

Yue made it clear that applicants must present concrete and feasible business plans and real-world application scenarios, with a particular focus 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.