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Hong Kong to begin 6-month transition period for new stablecoin rules

2025-07-30 11:26:39

Main Idea

The Hong Kong Monetary Authority (HKMA) will implement a six-month transition period for new stablecoin regulations, allowing temporary licenses for issuers who meet specific requirements.

Key Points

1. The HKMA will introduce a six-month transition period for stablecoin issuers to comply with new regulatory requirements.

2. Issuers must maintain high-quality liquid reserves, process redemptions within one business day, and have a physical presence in Hong Kong.

3. Non-compliant issuers will be forced to cease operations.

4. The HKMA will publish the names of applicants for transparency.

5. The framework aims to ensure stablecoin issuers have adequate financial resources and adhere to regulatory standards.

Description

Hong Kong will begin enforcing its new stablecoin regulations on Friday, with a six-month transition period allowing temporary licenses for issuers.

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