Hong Kong Monetary Authority Chief: First Batch of Stablecoins Will Focus on Cross-Border Trade and Web3 Applications

BlockBeats News, June 25th: According to a report by Phoenix News, the Hong Kong SAR Government published a notice in the Gazette on June 6th, announcing that the "Stablecoin Regulations" will officially come into effect on August 1st, marking the world's first comprehensive regulatory framework for fiat-backed stablecoins.

The Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, recently wrote that considering stablecoins are a relatively new product, the risks associated with issuance, user protection, market capacity, and long-term development, the application process will have a very high threshold, and initially only a "small number of licenses" will be issued.

Eddie Yue specifically emphasized that participation in the stablecoin issuer sandbox program initiated by the Hong Kong Monetary Authority in 2024 is not a prerequisite for future stablecoin issuer license applications. On the other hand, even for institutions already in the "sandbox," it does not guarantee that they will receive a license. The Monetary Authority will carefully consider all license applications based on consistent and rigorous standards.

Eddie Yue made it clear that applicants must put forward specific and feasible business plans and real-world use cases, with a focus on evaluating their reserve management capabilities, compliance systems, and technological security. The initial batch of stablecoins will focus on cross-border trade and Web3.0 applications.