Corporations seeking to subject stablecoins ought to rein of their enthusiasm, particularly when their principal enterprise is unrelated to digital property, Hong Kong Financial Authority (HKMA) CEO Eddie Yue, wrote in a blog post on the central financial institution’s web site.
Some firms that do not have a enterprise that’s associated to stablecoins — tokens whose worth is pegged to different property corresponding to fiat currencies — or digital property have introduced their intention to develop a stablecoin enterprise. Because of this, “inventory costs have risen, inventory buying and selling quantity has elevated, and the corporate’s status has additionally been drastically improved,” Yue stated within the Wednesday put up.
“With the latest scorching hypothesis of the stablecoin idea, the market has change into overly excited,” he wrote.
The monetary regulator’s cooling word come as it’s set to begin licensing stablecoin issuers from Aug. 1 after passing a stablecoin bill in May. Whereas 40 firms are set to apply for the regime, the HKMA is prone to approve fewer than 10.
“In actual fact, we have now made it clear earlier that at most only some stablecoin licenses can be authorised within the preliminary stage,” Yue stated. “In different phrases, there are a lot of disenchanted individuals.”
After the passage of the stablecoin invoice, the regulator sought opinions on implementing its regulation and cash laundering tips, one thing which it plans on publishing by the tip of July, he added.
The market capitalization of stablecoins climbed to more than $269 billion, in accordance with CoinGecko knowledge, following the signing into law of the U.S.’ GENIUS stablecoin bill final week.