Hong Kong Monetary Authority: A six-month transitional arrangement will be set up after the Stablecoin Ordinance comes into effect

According to the Hong Kong Radio website, the Stablecoin Ordinance will come into effect this Friday.

The Hong Kong Monetary Authority stated that it will set up a six-month transitional arrangement to deal with institutions that have previously been involved in stablecoin issuance in Hong Kong, including issuing temporary licenses to issuers that are able to comply with regulatory requirements.

If the issuer fails to meet the relevant requirements within three months after the ordinance comes into effect, it must orderly wind down its business in Hong Kong within four months of the law coming into effect.

If the Monetary Authority is not satisfied that the issuer is able to meet the licensing criteria and regulatory requirements, the issuer must orderly wind down its Hong Kong business within one month of receiving the rejection notice.