Hong Kong’s Justice Secretary confirmed that stablecoins pegged to the HKD must be licensed by the Monetary Authority under strict reserve, redemption, asset segregation, and stability mechanism rules.
Hong Kong's Secretary for Justice has mandated that issuers of fiat stablecoins pegged to the Hong Kong dollar must obtain a license from the Hong Kong Monetary Authority. Licensed issuers will need to manage reserve assets appropriately, implement sound redemption procedures, segregate client assets from corporate funds, and maintain strong stability mechanisms to uphold the HKD peg. These requirements aim to ensure regulatory compliance, consumer protection, and financial system stability.