Latest news with #HKMA
Yahoo
6 hours ago
- Business
- Yahoo
The Market Has Become 'Overly Excited' for Stablecoins, Hong Kong Financial Regulator Says
Companies looking to issue stablecoins should rein in their enthusiasm, especially when their main business is unrelated to digital assets, Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, wrote in a blog post on the central bank's website. Some companies that don't have a business that is related to stablecoins — tokens whose value is pegged to other assets such as fiat currencies — or digital assets have announced their intention to develop a stablecoin business. As a result, "stock prices have risen, stock trading volume has increased, and the company's reputation has also been greatly improved," Yue said in the Wednesday post. "With the recent hot speculation of the stablecoin concept, the market has become overly excited," he wrote. The financial regulator's cooling note come as it is set to start licensing stablecoin issuers from Aug. 1 after passing a stablecoin bill in May. While 40 firms are set to apply for the regime, the HKMA is likely to approve fewer than 10. "In fact, we have made it clear earlier that at most only a few stablecoin licenses will be approved in the initial stage," Yue said. "In other words, there are many disappointed people." After the passage of the stablecoin bill, the regulator sought opinions on implementing its regulation and money laundering guidelines, something which it plans on publishing by the end of July, he added. The market capitalization of stablecoins climbed to more than $269 billion, according to CoinGecko data, following the signing into law of the U.S.' GENIUS stablecoin bill last week. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Star
a day ago
- Business
- The Star
Hong Kong to implement stablecoin ordinance in sustainable manner: HKMA chief
HONG KONG, July 23 (Xinhua) -- Chief Executive of the Hong Kong Monetary Authority (HKMA) Eddie Yue said in a statement on Wednesday that it is important to implement the Stablecoins Ordinance in a robust and sustainable manner. Hong Kong's Stablecoins Ordinance will come into effect on Aug. 1. Yue said that given the merits of stablecoins as an emerging payment instrument and their gradual integration into the mainstream financial system as regulation takes shape, it is necessary to guard against undue speculation caused by market and public opinions. Judging the market and public excitement over the past month, it seems necessary to further rein in the euphoria, he said. In regard to guarding against financial risks, as an international financial center, Hong Kong is widely recognized for its prudent regulatory standards. In light of shared international regulatory concerns, more stringent requirements will be imposed in respect of anti-money laundering to minimize the risks of stablecoins being used as a money laundering tool. This is to ensure the orderly and healthy development of Hong Kong's stablecoin market, Yue said. Yue said that regulation is an art of balancing divergent objectives. More stringent regulatory requirements will inevitably limit the room for stablecoin businesses to scale rapidly in the short term. However, it is better for regulated stablecoin business, which is still in its infancy, to start with stricter regulations to ensure sound operation, he added. Yue pointed out that the HKMA also recognizes the importance of ensuring that the regulatory requirements are necessary and reasonable to create room for issuing entities to stand on their feet and thrive.
South China Morning Post
2 days ago
- Business
- South China Morning Post
Temper ‘excessive' stablecoin excitement, Hong Kong Monetary Authority chief warns
For the second time in a month, Hong Kong's de facto central bank sought to temper excitement surrounding stablecoins, warning against overly vague concepts and operations, stock speculation and money-laundering risks. Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority (HKMA), said in a blog post on Wednesday that efforts to cool down discussions about stablecoins in the market and society over the past month required some strengthening. 'We need to guard against excessive market and public opinion speculation,' he said. Hong Kong's stablecoin ordinance, which passed in late May and will take effect on August 1, requires issuers to obtain a licence from the HKMA and meet strict requirements on reserve assets and other factors. 'Dozens of institutions' got in touch with the HKMA either wanting to apply for licences or explore possibilities, Yue said. Next week, the HKMA will set out arrangements for accepting and processing licence applications. It will also aim to publish the results of two consultations around the same time: on guidelines for supervising licensed stablecoin issuers and for anti-money-laundering and counterterrorism financing requirements for regulated stablecoin activities. Without naming names, Yue said that some of the institutions considering stablecoins failed to propose feasible, specific solutions and implementation plans, or lacked risk-management awareness and ability. 'Many of them are still at the conceptual stage, such as proposing to improve cross-border payment efficiency, support the development of Web 3.0 [or] improve the efficiency of the foreign-exchange market, but lack practical application scenarios,' he said. A 'bubble' could be forming, which deserved more attention, as some listed companies' stock prices and trading volumes surged simply because they claimed an intention to develop stablecoin operations, 'regardless of whether their main business is related to stablecoins or digital assets', he added.
The Standard
2 days ago
- Business
- The Standard
Hong Kong to detail stablecoin regulation next week: regulator
The banking industry has been working closely with the HKMA on anti-fraud efforts, says HKAB chairperson Mary Huen. Photo by REUTERS
The Standard
2 days ago
- Business
- The Standard
Hong Kong's de facto central bank to release summary for stablecoin regulation
The banking industry has been working closely with the HKMA on anti-fraud efforts, says HKAB chairperson Mary Huen. Photo by REUTERS
