From August 1, Hong Kong authorities have been tightened responsibility for promoting stablecoins without a license of the regulatory department. Violators face a fine of 50,000 Hong Kong dollars ($ 6300) and imprisonment for up to six months.

The financial secretary of the Special Administrative District of China Paul Chan said that all companies that will advertise or offer private investors in Hong Kong, not licensed by monetary management (HKMA), will encounter criminal prosecution.

“We receive a large number of applications from companies who want to release stablecoins in Hong Kong. However, in the total mass of the application for registration, they remain conceptual offers in the form of improvement of cross -border payments, support for the development of Web3.0 technologies or optimizing the effectiveness of the currency market – but do not give examples of practical use of stablecoins and do not provide measures to combat concomitant risks. Many applicants will be disappointed with our refusal, ”said the General Director of HKMA Eddie Yue Wai-Man.

The head of HKMA said that in order to obtain a license to emitted stablecoins Obligated Give the regulator a detailed business plan, provide reserves with highly liquid assets in the amount of at least 25 million Hong Kong dollars (about $ 3.2 million) and introduce a risk management system.

Earlier, the Director General of the Monetary and Credit Department of Hong Kong Eddie Yue Vai-Man said that the agency plans to limit free access to cryptocurrencies to the local stabelcoin market and intends to issue licenses after strict selection of applicants.