Hong Kong to introduce licensing for steblecoins
Hong Kong plans to introduce licences for stabilecoin issuers this year. The local regulator, The Hong Kong Monetary Authority (HKMA), made the announcement. Companies that want to operate in the market will have to file paperwork for their services.
The HKMA will take control of all phases of the stablcoin business - issuance, management and operations. In doing so, issuers must ensure that their currencies have reserves that are 100% in line with the number of coins in circulation.
Binance, MasterCard, Visa, Matrixport, Circle, Ripple, Animoca Brands and others are helping Hong Kong authorities develop a plan to regulate staplecoins (and other cryptocurrencies).