The Hong Kong Monetary Authority (HKMA) cautioned investors that no stablecoins pegged to the offshore yuan had been approved for issuance in the city, as regulators sought to temper the frenzy surrounding digital assets.
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In a statement published on WeChat on Wednesday, the HKMA refuted claims circulating on social media that the first offshore yuan-pegged stablecoin had been issued in Hong Kong.
The authority said it had not granted any licences for stablecoin issuers and deemed any related issuance or marketing activities illegal. Investors were urged to remain vigilant.
Hong Kong’s new regulatory regime for stablecoin issuers, which took effect in August, imposes stringent requirements on companies aiming to grab a share of the rapidly expanding market.
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What’s the hype about stablecoins?
What’s the hype about stablecoins?
Stablecoins are cryptocurrency tokens designed to maintain a stable value linked to fiat currencies, such as the US dollar or the Hong Kong dollar. Initially used by crypto traders to quickly move their capital across different tokens and platforms, stablecoins have gained traction for their potential to improve the efficiency of cross-border payments.
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