Today the Hong Kong Monetary Authority (HKMA) published several documents relating to the new stablecoin regulations which become effective on 1 August 2025. The regulator had warned that the anti money laundering (AML) requirements would be strict, and they are. Most of the AML document reads as expected, but one particular clause effectively requires the stablecoin issuer to identify every stablecoin holder.
In other jurisdictions, issuers perform AML and compliance on their direct counterparties, including anyone requesting a redemption. The HKMA supports the additional use of blockchain analytics to enhance compliance. However, one key clause says that it is ‘yet to be proven’ whether this is sufficient to address risks. So it concludes:
“Unless a licensee can demonstrate to the HKMA’s satisfaction that these risk mitigating measures are effective in preventing and combating ML/TF and other crimes, the identity of each individual stablecoin holder should be verified.”
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