TechFlow reports, according to Hong Kong media outlet "Herald Tribune," that under the HKMA's stablecoin consultation document, issuing stablecoins in Hong Kong without a license and advertising stablecoins issued by unlicensed entities are both criminal offenses.
The document also proposes introducing a range of civil and regulatory sanctions. The HKMA may impose appropriate penalties based on the severity and duration of violations, including temporary or permanent suspension or revocation of licenses, fines of up to HKD 10 million, or fines equivalent to three times the profits gained or losses avoided due to the violation, whichever is higher.
The HKMA proposes that issuers must possess sufficient financial resources, with a minimum capital requirement of HKD 25 million. If an institution defaults or collapses and potentially impacts the financial system, the HKMA may intervene in the operations of the licensed entity and require that the affairs, business, and assets of the licensee be managed by an administrator appointed by the HKMA.
