{"id":73332,"date":"2023-01-31T15:25:25","date_gmt":"2023-01-31T13:25:25","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=73332"},"modified":"2025-09-09T13:35:24","modified_gmt":"2025-09-09T10:35:24","slug":"hong-kong-regulator-to-require-licensing-for-stablecoin-issuers","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/hong-kong-regulator-to-require-licensing-for-stablecoin-issuers\/","title":{"rendered":"Hong Kong regulator to require licensing for stablecoin issuers"},"content":{"rendered":"

The Hong Kong Monetary Authority (HKMA) during 2023-2024will introduce<\/a> mandatory licensing for issuers \u00abstablecoins\u00bb<\/a>. The initiative aligns with feedback received on the regulator’s powers changes.<\/p>\n

The HKMA will prohibit the use of algorithmic stablecoins<\/a> such as TerraUSD (UST)<\/a>, which sparked turmoil in the crypto markets in the spring of 2022 with far-reaching consequences.<\/p>\n

The regulator plans to oversee the management, issuance and custody of fiat-backed tokens.<\/p>\n

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“The value of reserve assets must always correspond to the value of the circulating ‘stablecoins’. The backing must be of high quality and liquidity,”<\/em> \u2014 according to the press release.<\/p>\n<\/blockquote>\n

In developing concrete regulatory mechanisms, the HKMA will take into account feedback received, recent market changes and international experience.<\/p>\n

In the UK, amendments to the Financial Services and Markets Bill have been laid before Parliament<\/a>. The provisions include, among other things, stablecoins.<\/p>\n

According to media reports, the proposed U.S. Congress bill to regulate ‘stablecoins’ would impose<\/a> a two-year ban on new algorithmic stablecoins such as TerraUSD.<\/p>\n

In Japan, after the collapse of TerraUSD (UST), a bill approved<\/a> that bans listing of stablecoins issued outside Japan on domestic crypto exchanges.<\/p>\n

In January FSA<\/span>said<\/a> it was ready to soften such norms for assets that will undergo ‘individual checks’ and guarantee consumer protection.<\/p>\n

In the European Union, MiCA<\/span>provides for<\/a> restrictions on the volume of ‘stablecoins’ with collateral not denominated in euros. The document also effectively bans algorithmic stablecoins.<\/p>\n

The head of the Monetary Authority of Singapore, Tharman Shanmugaratnam, stressed that ‘stablecoins’ require<\/a> separate regulation.<\/p>\n

In October, the Financial Stability Board FSB<\/span>concluded<\/a> that none of the existing stablecoins meet the standards set for central-bank digital currencies of the world’s largest economies.<\/p>\n

Moody’s is developing<\/a> a scoring system for ‘stablecoins’, according to media reports.<\/p>\n

CryptoCompare noted<\/a> a drop in the market share of algorithmic stablecoins<\/a> from 12.4% in April 2022 to 1.71%. The collapse of TerraUSD was the cause.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Hong Kong Monetary Authority (HKMA) will introduce mandatory licensing for issuers of \u00abstablecoins\u00bb during 2023-2024, in line with feedback received on the regulator’s powers changes.<\/p>\n","protected":false},"author":1,"featured_media":73333,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[832,36,807],"class_list":["post-73332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-hong-kong","tag-regulation","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=73332"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73332\/revisions"}],"predecessor-version":[{"id":73334,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/73332\/revisions\/73334"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/73333"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=73332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=73332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=73332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}