The Hong Kong Monetary Authority (HKMA) has officially released its regulatory framework for stablecoin issuers, with rules set to come into effect from 1 August. The new measures include detailed licensing guidelines and a public registry of approved issuers, as part of the city’s broader efforts to bring transparency and oversight to the fast-growing crypto sector.

Two Sets of Guidelines Introduced

The HKMA published two key documents this week: one outlining the supervision of licensed stablecoin issuers and another focused on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures. These documents follow months of consultation and reflect the authority’s intention to regulate stablecoin activity more stringently.

In an official statement, the HKMA noted that the public would soon be able to check the list of licensed issuers via a dedicated section on its website. This registry aims to help individuals identify legitimate entities operating within the city’s crypto ecosystem.

No Licences Issued Yet

Despite finalising the regulatory framework, the HKMA confirmed that no licences have been issued so far. It urged the public to remain cautious, warning against companies or individuals who falsely claim to be licensed or in the process of applying.

“Members of the public who hold unlicensed stablecoins are doing so at their own risk,” the regulator said.

Warnings Against Market Hype and Weak Applications

Eddie Yue, Chief Executive of the HKMA, addressed concerns about recent market euphoria surrounding stablecoins. Speaking on Thursday, he said that speculative hype had led to unjustified trading volumes and temporary surges in stock prices. Yue noted that the regulator had received numerous licence applications, many of which failed to meet the required standards.

“Some proposals were vague, unrealistic, or lacked the technical expertise expected from stablecoin issuers,” he said, adding that the regulator would issue only a limited number of licences in the initial phase.

The HKMA has encouraged interested entities to approach the authority by 1 August, with full applications to be submitted by 30 September to be considered in the first batch.

Shenzhen Raises Alarm Over Stablecoin Scams

Elsewhere in China, concerns over stablecoin-related scams are growing. Authorities in Shenzhen issued a public warning earlier this month about illegal crypto schemes operating under the guise of stablecoin offerings. The city’s task force on illicit financial activity highlighted how unlicensed entities were misleading investors using deceptive promotions and exploiting the public’s limited understanding of digital currencies.

Officials urged the public to remain vigilant and avoid engaging with unverified crypto investments.

A Step Towards Greater Oversight

Hong Kong’s regulatory shift marks a significant move towards a more structured and secure crypto environment. While the region continues to explore the potential of digital assets, authorities are keen to avoid the risks associated with unregulated or fraudulent actors. With clear rules in place and a formal licensing process underway, the HKMA aims to balance innovation with investor protection as it builds a more transparent financial future.