Hong Kong Monetary Authority: Stablecoins do not have to be pegged to the Hong Kong dollar

Regarding the public consultation paper jointly issued by the Treasury Bureau and the HKMA yesterday, He Hanjie, Assistant Chief Executive (Monetary Management) of the HKMA, stated that stablecoins do not necessarily have to be pegged to the Hong Kong dollar. However, existing stablecoin issuers on the market must obtain a license in Hong Kong, otherwise the relevant platforms will only be able to sell the stablecoins to professional investors. The stablecoin issuance system is aimed at issuers, and if there are more than one stablecoin, restrictions will be imposed based on the licensing activities and conditions. He Hanjie also stated that there is a six-month transition period in this document. After the regulations take effect, existing issuers must submit a license application within the first three months. If no application is submitted within the period, their business will be orderly terminated by the end of the fourth month.