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Hong Kong Regulator Confirms No Licensed Stablecoin Issuers Approved

Hong Kong’s Financial Services and the Treasury Bureau clarifies that virtual asset OTC platforms cannot offer stablecoins, with no issuers yet licensed by the Hong Kong Monetary Authority.

Summary

Hong Kong's Financial Services and the Treasury Bureau has reaffirmed that only licensed entities can offer stablecoins, explicitly stating that OTC platforms are not authorized. The Hong Kong Monetary Authority has yet to license any stablecoin issuers, and purchases through unregulated channels present risks. The public consultation on digital asset trading and custody will inform future regulatory developments.

Terms & Concepts
  • Stablecoin: A type of cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as a fiat currency.
  • Hong Kong Monetary Authority (HKMA): The central banking institution of Hong Kong responsible for monetary policy, banking stability, and licensing of financial institutions, including potential stablecoin issuers.
  • OTC (Over-the-Counter) Firms: Firms that facilitate direct trading of assets between parties outside of exchanges, often involving cryptocurrencies or other financial instruments.