The financial secretary of the Special Administrative District Hong Kong Paul Chan (Paul Chan) said that from August 1, license will be issued only to those companies that can provide the Credit Department of Hong Kong (HKMA) “Convincing evidence of the stability of the business model”.
HKMA requirements provide for applicants for a detailed business plan and a transparent management structure, as well as guarantees for the full support of stablecoins with high-quality assets, such as money or government bonds in the amount of 25 million Hong Kong (about $ 3.2 million).
Future issuers of stabilcoins will have to introduce financial risk management systems, including the ability to cover their obligations to stablecoin holders in case of market shocks, as well as ensure regularly conducting stress testing of the financial stability of the project.
The official added that the number of issuers of stablecoins will most likely remain at the level of “unambiguous numbers”.
The day before, Reuters reported that the large Chinese technological companies JD.com and Ant Group submitted applications to the National Bank of China (NBK) and held negotiations with representatives of the regulator, where they discussed the conditions for the release and appeal of stabilcoins tied to the yuan.
Source: Bits
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