Hong Kong's Stablecoin Ordinance will take effect on August 1. Initially, only a few licenses may be launched, and unlicensed stablecoin promotion will be convicted

Hong Kong's "Stablecoin Ordinance" will take effect on August 1. The Hong Kong Monetary Authority plans to publish a summary of the "Stablecoin Issuer Licensing System" next week (July 28). Applicants will receive more detailed guidance to clarify the specific requirements of stablecoin issuers in terms of anti-money laundering, reserves, information disclosure, etc.

Against the backdrop of a sharp rise in the stock market around stablecoin concept stocks, on July 23, Yu Weiwen, Chief Executive of the Hong Kong Monetary Authority, wrote an article entitled "Stable Coins for a Long Term Journey", proposing to "avoid excessive speculation", that is, to guard against excessive conceptualization and bubble trends. At the same time, Chief Executive Yu Weiwen reminded to strictly guard against financial risks.

Currently, there are three groups of testers in the stablecoin sandbox, namely Yuanbi Innovation Technology Co., Ltd.; JD Coin Chain Technology (Hong Kong) Co., Ltd.; and a joint venture established by Standard Chartered Bank (Hong Kong), Animoca Brands, and Hong Kong Telecom (HKT). Recently, senior industry insiders in Hong Kong revealed that there are currently 50 to 60 companies interested in applying for Hong Kong stablecoin licenses, including state-owned enterprises, financial institutions, and Internet giants in mainland China.