Will Hong Kong open its doors to retail stablecoins?

Despite the promising pass of an Ordinance, use cases of stablecoins in Hong Kong remain vague. Adopting retail stablecoins depends on multiple factors, including the regulator’s stance and technical concerns, such as monitoring unhosted wallets.

Hong Kong’s Stablecoin Ordinance went into effect on August 1, formally establishing a licencing scheme required for stablecoin issuers in the city. Despite an undisclosed number of total applicants to the licence for now, the market anticipates the first batch of licences to be granted by end of this year at the earliest.

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