6 months ago
Hong Kong has moved person to formalizing its stablecoin regulations by publishing a measure successful its gazette connected Dec. 6 that establishes a wide model for issuers and marketers.
Stablecoins person go utile tools for cross-border transactions, with Standard Chartered precocious calling them the crypto industry’s “killer app.”
Under the caller bill, stablecoin issuers and marketers indispensable unafraid licenses from the Hong Kong Monetary Authority (HKMA). This request extends to stablecoins pegged to the Hong Kong dollar. Issuers indispensable support reserve assets successful section banks, though the HKMA whitethorn occasionally let overseas custody arrangements.
The authorities outlines strict compliance measures, including a minimum paid-up superior of HK$25 cardinal (more than $3 million). Issuers indispensable besides show beardown fiscal health, liquidity, and hazard absorption capabilities. Activities similar misrepresentation to beforehand stablecoins are prohibited to guarantee user extortion and marketplace integrity.
Additionally, the HKMA volition summation enhanced powers to oversee, investigate, and enforce compliance nether this framework.
The inaugural reflects Hong Kong’s committedness to addressing fiscal risks portion fostering innovation. Officials person emphasized that the model aligns with planetary standards and embodies a rule of applying accordant regularisation to akin activities and risks.
Christopher Hui, Secretary for Financial Services and the Treasury, pointed retired that the connection aligns with the “same activity, aforesaid risks, aforesaid regulation” principle. This ensures the model meets planetary standards and reinforces Hong Kong’s presumption arsenic a starring fiscal hub.
Eddie Yue, Chief Executive of the HKMA, highlighted that the measure incorporates feedback from manufacture consultations and aims to foster sustainable maturation wrong the stablecoin ecosystem.
The measure is acceptable for a archetypal speechmaking successful the Legislative Council connected Dec. 18. If passed, Hong Kong volition articulation aboriginal movers similar the European Union and Japan successful regulating stablecoins portion outpacing different jurisdictions similar the US, which has yet to instrumentality akin frameworks.
The station Hong Kong races up with caller stablecoin regulatory framework appeared archetypal connected CryptoSlate.
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