In Hong Kong, the transfer of $8,000 in stablecoins will be subject to KYC procedure

The Hong Kong Monetary Authority (HKMA) has announced the implementation of a mandatory "Know Your Customer" (KYC) procedure for stablecoin holders. This measure aims to reduce the financial risks associated with the use of such assets. Three types of organizations will be required to conduct this verification.

These include:

• financial institutions;

• virtual asset service providers;

• trusted third parties.

 The HKMA has taken this step because current monitoring tools and solutions in the industry "do not fully meet the authorities' expectations in effectively managing risks related to money laundering and financial crimes."

A few days ago, a law was passed to regulate the licensing of stablecoin issuers, which will come into effect on August 1st. According to the law, "interested parties who consider themselves sufficiently prepared and wish to receive early review must submit an application to the HKMA by September 30, 2025."

 Additionally, the "Anti-Money Laundering and Counter-Terrorism Financing Guidelines for Licensed Stablecoin Issuers" state that issuers are also required to verify the identity of a stablecoin holder before carrying out a one-time transaction (such as issuing or redeeming stablecoins) worth $8,000 or more per person.

 Eddie Yue, the head of the Hong Kong Monetary Authority, expressed concerns about the potential for a bubble. The recent hype surrounding stablecoins has led to excessive market activity, he commented on the new regulations.