The Hong Kong Monetary Authority (HKMA) has established a regulatory framework for stablecoin issuers, with guidelines set to take effect on Aug. 1. The guidelines cover supervision of licensed stablecoin issuers and Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) rules. HKMA will launch a public registry of licensed issuers.

The HKMA has not issued any licenses yet and warns the public to be cautious of entities claiming to be licensed stablecoin issuers. Chief Executive Eddie Yue warned of a stablecoin hype frenzy leading to unjustified trading volume and stock price surges. He emphasized the need to regulate the market and cautioned against unlicensed stablecoin offerings.

Market participants interested in applying for a stablecoin license in Hong Kong must approach the regulator by Aug. 1 and submit full applications by Sept. 30 to be considered in the first batch of licensees. Yue stated that only a few licenses will be issued initially due to concerns about the lack of technical expertise in some applicants.

Shenzhen authorities have warned citizens about stablecoin-related scams disguised as crypto offerings. The city’s government task force for illicit financial activity cautioned the public against unlicensed entities promoting illegal investments using the public’s limited stablecoin knowledge.

Read more at Cointelegraph: HKMA Finalizes Stablecoin Rules, Warns No Licenses Issued