On July 17, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) published their findings on creating local legislation regarding stablecoins.
The publication follows an initial bill to create a regulatory framework for fiat-linked stablecoin (FRS) issuers in Hong Kong.
108 submissions received during consultation period
The findings are the result of a two-month public consultation period, which ended in February. During this period, 108 submissions were received from a range of stakeholders, including market participants, industry associations and professional bodies.
The majority of respondents recognised the need for a regulatory regime for FRS issuers to manage potential monetary and financial stability risks while ensuring transparent and effective supervision. The proposed regulatory requirements and implementation arrangements generally received broad support, with additional suggestions from respondents.
Support for new proposed regulatory regime
Christopher Hui, the Secretary of the FSTB, stated that the new licensing regime for FRS issuers would complement the existing regulatory measures for virtual asset (VA) trading platforms. He stressed that this would strengthen the VA regulatory framework in Hong Kong, in line with international standards, and help mitigate financial stability risks associated with stablecoin issuance.
Eddie Yue, CEO of the HKMA, expressed his appreciation for the feedback received and emphasized the strong support for the proposed regulatory regime. Yue expects this regime to contribute to a sustainable and responsible stablecoin ecosystem in Hong Kong.
“We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong,” Yue said.
Proactively monitoring digital assets industry
The FSTB and HKMA will incorporate the feedback into the final draft bill, with the aim of submitting a draft bill to the Legislative Council soon. In addition, the HKMA is considering applications for a stablecoin issuer sandbox and will publish the list of participants soon.
Hong Kong regulators remain proactive in monitoring the digital asset industry. On July 15, the Hong Kong Securities and Futures Commission updated its warning list to include seven crypto trading platforms operating without licenses, raising concerns about investor safety. In June, Hong Kong called for feedback on various aspects of Web3’s policy development, including balancing technical, legal and regulatory frameworks.
Source: https://newsbit.nl/hongkong-introduceert-wetgeving-voor-stablecoins/
