Hong Kong Proposes Licensing Regime for Stablecoin Issuers

The Hong Kong Monetary Authority and the Financial Services and the Treasury Bureau seek public feedback on the proposal until February 29, 2024.

Hong Kong regulators propose a licensing regime for stablecoin issuers, requiring them to obtain a license from the city's central bank, the Hong Kong Monetary Authority (HKMA), before serving retail customers.
The proposed legislation stipulates that stablecoin issuers must be locally incorporated and maintain a pool of high-quality and highly liquid reserve assets.
The HKMA and the Financial Services and the Treasury Bureau (FSTB) will gather public feedback on this legislative proposal until February 29, 2024.
The authorities also plan to launch a sandbox agreement to exchange views with market players looking to establish a stablecoin issuance business in Hong Kong.
Unlicensed stablecoins, such as Tether and USDC, will not be allowed to be sold to Hong Kong's retail investors through the city's licensed platforms, but will still be available to professional investors.