Bank of China Hong Kong Explores Stablecoin Issuance, Boosting Market Excitement
Bank of China Hong Kong (BOCHK) shares saw a 6.7% increase amid reports of the bank preparing to apply for a local stablecoin issuer license. This development, coupled with Hong Kong's robust stablecoin licensing regime, signals the region's growing appeal as a regulated digital asset hub.
Hong Kong's framework, launched August 1st, requires issuers to gain HKMA approval and meet stringent standards for reserves, redemption, AML compliance, and disclosures. Major financial players like Standard Chartered have already shown interest, alongside tech giants like JD.com and Ant Financial, highlighting the potential for stablecoins to reduce cross-border payment costs.
Regulators, however, urge investor caution against market volatility fueled by licensing rumors, emphasizing the need for thorough due diligence.