|

Hong Kong Sounds Alarm on Unapproved Digital Yuan Stablecoins Amid Market Surge

🇭🇰

The Hong Kong Monetary Authority (HKMA) has firmly denied social media rumours that the world’s first offshore yuan-pegged stablecoin has been issued within the metropolis.

In a public assertion the regulator labeled the studies as “false information” and urged buyers to stay vigilant in opposition to unverified claims that might mislead the market.

The warning comes amid heightened global interest in stablecoins, notably these linked to the Chinese yuan, as merchants and builders search for new types of liquidity within the digital asset sector. HKMA officials burdened that no entity has been granted a license to challenge a yuan-pegged stablecoin in Hong Kong.

Stablecoin Ordinance Now in Effect

The HKMA reiterated that beneath the Stablecoin Ordinance, which formally took impact on August 1, any firm in search of to challenge a stablecoin in Hong Kong—or promote associated actions to the native public—should safe an official license from the regulator.

The legislation requires issuers of “referenced stablecoins” to display compliance with strict operational and transparency requirements earlier than providing merchandise to the market.

HKMA burdened at current, no license has been awarded. As a outcome, any claims of yuan-pegged stablecoin issuance or advertising and marketing in Hong Kong should not solely deceptive but in addition unlawful beneath the brand new regulatory framework.

Market Surveillance and Enforcement Measures

The HKMA confirmed it’s actively monitoring trading activity involving stablecoins and can take enforcement actions in opposition to these present in violation of the ordinance. Regulators mentioned they’ll rely on factual proof and supporting documentation earlier than transferring ahead with penalties or additional investigations.

The authority emphasised its intent to safeguard the steadiness of Hong Kong’s monetary markets as the town positions itself as a regulated hub for digital belongings. Market individuals have been reminded that compliance with the licensing regime is a prerequisite for partaking in stablecoin issuance and promotion.

Public Urged to Verify Information

In addition to enforcement, the HKMA is looking on the general public to train warning and confirm data straight by its official web site, the place a public register of licensed stablecoin issuers is maintained.

The register, required beneath Article 21 of the Stablecoin Ordinance, offers real-time updates on approved entities.

The HKMA warned that deceptive promotions not solely misrepresent the regulator’s stance however may additionally expose buyers to vital monetary losses. The assertion displays ongoing efforts by Hong Kong authorities to mood speculative frenzy round digital belongings whereas selling transparency and investor safety.

With stablecoins persevering with to draw international consideration, the HKMA’s newest warning underscores the significance of readability, regulation, and accountable participation within the evolving digital finance ecosystem.

HKMA Releases Stablecoin Licensing Framework

In July, HKMA officially launched its long-anticipated licensing regime for stablecoin issuers.

The newest replace exhibits Hong Kong’s intention to control the rising stablecoin sector, providing readability for market individuals whereas reinforcing investor safety and monetary integrity.

The HKMA printed two units of paperwork: the “Guidelines on the Supervision of Licensed Stablecoin Issuers” and the “Guidelines on Combating Money Laundering and Counter-Terrorist Financing.”

These have been accompanied by abstract notes detailing licensing utility procedures and transitional provisions for current issuers. Institutions eager about making use of should contact the HKMA by August 31 to obtain early-stage suggestions, with a submission deadline of September 30 for these able to proceed.

The put up Hong Kong Sounds Alarm on Unapproved Digital Yuan Stablecoins Amid Market Surge appeared first on Cryptonews.

Similar Posts