Hong Kong's "Stablecoin Regulation": Issuers must implement controls to prevent users from using VPN during identity verification

News, July 31, the Hong Kong Monetary Authority (HKMA) stated in its published Licensed Stablecoin Issuer Regulation Guide "Stablecoin Code" that it requires licensed stablecoin issuers to "ensure that they do not issue or offer a designated stablecoin in jurisdictions where such transactions are prohibited," and that "licensees should implement control measures to mitigate the risk of location masking during remote customer identification processes and in daily operations (e.g., the use of a virtual private network, i.e., VPN)."