The #hongkong administration recently introduced a regulation to restrict investors from buying stablecoins. The Finance and Treasury Bureau (FSTB) and Monetary Authority (HKMA) require a HKMA license.
To obtain a license, companies must fully support all #stablecoin in circulation. Companies will also have to disclose information and report regularly. They will also need to open an office in Hong Kong and have a staff.
However, algorithmic stablecoin issuers will not be able to apply for a license.
“Enforcing agreements and laws can properly manage real risks. They relate to the development of stablecoins in Hong Kong and are consistent with international standards.” Hui Ching, director of the finance department.
Previous moves
In May, Hong Kong's Securities and Futures Commission (SFC) decided to officially allow retail investors to trade cryptocurrencies. SFC will allow retail investors to sell #bitcoin (BTC) and Ether (ETH), albeit subject to strict security measures. Cryptocurrencies must be “bad” free for 12 months for retail trading. Additionally, cryptocurrencies must be included in at least two indices.
Additionally, in December, the SFC announced its readiness to accept applications to launch crypto ETFs. The joint statement emphasized that the agencies have reviewed their existing rules and policies related to companies and intermediaries wishing to participate in cryptocurrencies.