Hong Kong's "Stablecoin Ordinance": Issuers Need to Implement Controls to Prevent Users from Using VPNs in Identity Authentication

On July 31, the Hong Kong Monetary Authority (HKMA) stated in its regulatory guidelines for licensed stablecoin issuers, the "Stablecoin Ordinance," that it requires licensed stablecoin issuers to "ensure that specified stablecoins are not issued or offered in jurisdictions that prohibit their trading," and that "licensees should implement control measures to mitigate the risks of location masking (e.g., using virtual private networks, i.e., VPNs) in remote customer identification procedures and in day-to-day operations." [BlockBeats]