Hong Kong Monetary Authority: A six-month transitional arrangement will be set up after the Stablecoin Ordinance comes into effect

PANews reported on July 29th that, according to the Hong Kong Radio Television website, the Stablecoin Ordinance will take effect this Friday. The Hong Kong Monetary Authority (HKMA) announced a six-month transitional arrangement for institutions previously operating in Hong Kong with stablecoin issuance. These arrangements include issuing temporary licenses to issuers capable of complying with regulatory requirements. If an issuer fails to meet the relevant requirements within three months of the ordinance taking effect, it must orderly wind down its Hong Kong operations within four months of the ordinance's entry into force. If the Monetary Authority is not satisfied that an issuer is able to meet the licensing criteria and regulatory requirements, the issuer must orderly wind down its Hong Kong operations within one month of receiving the refusal notice.

Earlier, The Hong Kong Monetary Authority issued several documents regarding the regulatory regime for stablecoin issuers, which will take effect on August 1st.