Xu Zhengyu: The Monetary Authority is monitoring the trading situation of stablecoins in the market and emphasizes that it has not issued licenses to any stablecoin issuers

The Secretary for Financial Services and the Treasury, Xu Zhengyu, stated that the "Stablecoin Ordinance" (Chapter 656) has been implemented since August 1 of this year. Currently, only "licensed providers" are allowed to offer specified stablecoins, and virtual asset over-the-counter trading institutions are not classified as "licensed providers" under the Ordinance, thus they cannot offer specified stablecoins to retail or professional investors.

Xu Zhengyu indicated that in the initial phase of the Ordinance's implementation, the Hong Kong Monetary Authority (HKMA) will enhance publicity to deepen the industry's understanding of the Ordinance and encourage compliance with its relevant requirements. At the same time, the HKMA will monitor the market situation involving stablecoin transactions, and if any behavior suspected of violating the Ordinance is discovered, it will consider further follow-up actions based on relevant facts and evidence.

Currently, the HKMA has not issued any licenses to stablecoin issuers. The public will only be protected under the Ordinance when purchasing regulated stablecoins from "licensed providers" specified in the Ordinance. If the public purchases stablecoins through unregulated channels or any unregulated stablecoins, they must bear the risks themselves.

Additionally, the Financial Services and the Treasury Bureau and the Securities and Futures Commission have just conducted a public consultation on the legislative proposal for a licensing system for digital asset trading and custody service providers from June 27 to August 29. The Financial Services and the Treasury Bureau and the Securities and Futures Commission are referencing the opinions obtained from the public consultation to formulate the details of the relevant licensing system and will announce the legislative timetable in due course