Hong Kong Regulators Caution Against Unapproved Stablecoins
Hong Kong’s financial watchdogs are urging caution among investors regarding unapproved stablecoins tied to the Chinese yuan. The Hong Kong Monetary Authority (HKMA) has not issued any licenses for stablecoin issuers yet.
Since the Stablecoin Ordinance took effect, interest in digital assets has soared. Many firms are eager to become licensed stablecoin issuers under the HKMA. However, the HKMA has not issued any licenses for stablecoin issuers yet.
Investors in Hong Kong shoudl be wary of unapproved stablecoins linked to the Chinese yuan. The Hong Kong Monetary Authority (HKMA) has not granted any licenses for stablecoin issuers so far.
Interest in digital assets has surged since the Stablecoin Ordinance came into effect. Many firms are keen to become licensed stablecoin issuers under the HKMA. However, the HKMA has not issued any licenses yet.
AnchorX, a Hong Kong-based firm, recently launched an offshore stablecoin pegged to the yuan called AxCNH. Even though the HKMA has not issued any licenses, AnchorX claims it has a valid license from Kazakhstan. The stablecoin aims to facilitate cross-border payments for offshore Chinese enterprises and countries involved in the Belt and Road Initiative.
At least 77 institutions have expressed interest in registering for a stablecoin issuer license. Many of these are state-owned firms from China, such as China National Petroleum Corporation and the Bank of China. The surge in stablecoin interest has sparked a market boom in Hong Kong’s digital asset sector. However, the China Securities Regulatory Commission has ordered local brokerages to halt tokenization activities in Hong Kong.
The HKMA has stated that it is unlikely to grant stablecoin issuer licenses this year. The Hong Kong securities and Futures Commission has also recorded a rise in fraud risks related to digital assets after the Stablecoin Ordinance came into effect.
