According to the Stablecoin Consultation Paper of the Hong Kong Monetary Authority, it is a criminal offense to issue stablecoins in Hong Kong without a license and to issue advertisements to promote stablecoins from unlicensed issuers.
For those institutions that are qualified to issue stablecoins even if they obtain a license, the document also recommends that the regulatory system should introduce a series of civil and regulatory sanctions. The HKMA may consider imposing appropriate penalties, including temporary Or the license may be permanently revoked or revoked, with a fine of not more than 10 million yuan, or a fine equivalent to three times the amount of profits gained or losses avoided due to the violation, whichever is higher.
For licensed institutions, if the issuer violates the relevant proposed legal requirements or operates improperly, the document proposes to empower the Hong Kong Monetary Authority to compel all personnel of the institution suspected of violating the rules to provide evidence, including any records or documents, and apply to the magistrate if necessary. Search warrants and conduct seizures.
The Hong Kong Monetary Authority proposes that issuers must have sufficient financial resources and the minimum equity requirement is NT$25 million. When an institution defaults or fails, it may have a potential impact on the financial system. The Hong Kong Monetary Authority can intervene in the operations of the licensee when necessary, and Requires the affairs, business and property of the licensee to be managed by an administrator appointed by the Hong Kong Monetary Authority. (Economic Journal)