Hong Kong Monetary Authority (HKMA) Chief Executive Eddie Yue Yi-ming announced that beginning in March, institutions issuing stablecoins in Hong Kong will be granted licenses. Initially, these licenses will be issued to a select few organizations. Stablecoins are cryptocurrencies typically pegged to stable assets such as the US dollar or gold, reducing price volatility. Financial institutions and central banks worldwide are taking steps to regulate and oversee this emerging financial tool to ensure consumer protection and financial stability.
As a major global financial center, Hong Kong has decided to strengthen its policies to clarify the legal status of cryptocurrencies, particularly stablecoins, fostering transparency and trust within its financial system. This move by the HKMA is expected to solidify Hong Kong’s position in the global financial market and create new opportunities for investors. This will mark the first time Hong Kong officially licenses entities in the cryptocurrency sector, representing a significant milestone for market development. Given the early stage of this initiative, licensing will involve stringent criteria and careful evaluation to minimize financial risks.
Experts believe that if successful, this plan could enhance Hong Kong’s status as a global cryptocurrency hub while providing legal protections to consumers and investors.
Source: coindesk
