Odaily News In response to the public consultation document jointly issued by the Treasury Bureau and the Hong Kong Monetary Authority yesterday, Ho Hon-kit, Assistant Chief Executive (Monetary Management) of the Hong Kong Monetary Authority, said that this document has a 6-month transition period. After the regulations take effect, existing issuers must first Submit a license application within 3 months. If the application is not submitted within the period, its business will be closed in an orderly manner before the end of the fourth month. Licensing criteria and conditions include sound reserve management and stabilization mechanisms, holders redemption requirements for stablecoins, etc. The issuer needs full reserve support, and the reserve assets must be of high quality and highly liquid, such as Hong Kong government bonds. In addition, the document recommends that the minimum paid-up share capital is HK$25 million, or 2% of the face value of the circulating fiat stablecoin, whichever is higher. He also said that stablecoins do not necessarily have to be pegged to the Hong Kong dollar, but existing stablecoin issuers on the market need to obtain a license in Hong Kong, otherwise the relevant platforms will only be able to sell related stablecoins to professional investors. The stablecoin licensing system is for issuers. If there is more than one stablecoin, restrictions will be imposed based on the licensing activities and conditions. (Ming Pao)