Yu Weiwen: Hong Kong has set relatively strict standards for stablecoin issuers, and only a few licenses are expected to be issued in the first phase

Hong Kong's Stablecoin Ordinance will come into effect on August 1. Yu Weiwen, chief executive of the Hong Kong Monetary Authority, said that Hong Kong has set relatively strict standards for stablecoin issuers, with high entry thresholds, almost on par with e-wallet and banking supervision. It is expected that only a few licenses will be issued in the first phase, and the licensed stablecoins will have different specific uses, such as cross-border trade. Yu Weiwen mentioned that the Hong Kong Monetary Authority has very strict requirements on risk management, whether it is asset reserve management, stability mechanism, redemption policy, or most importantly, anti-money laundering regulations, which are almost the same as e-wallets and banks. Stablecoins have payment properties. The Stablecoin Ordinance provides a comprehensive regulatory framework for issuers to ensure the same regulatory rules for the same risks, and the healthy and sustainable development of the industry. (Jin Ten)