Hong Kong working on investor protection regulations, says central bank exec

Central slope governors from astir the globe are presently successful Thailand to sermon the relation of cardinal banks amid evolving fiscal technology. The conference is jointly hosted by the Bank of Thailand (BOT) and the Bank for International Settlements (BIS).

A sheet treatment connected digitalized monetary systems saw Eddie Yue, main enforcement of the Hong Kong Monetary Authority, Changyong Rhee, politician of the Bank of Korea, Adrian Orr, politician of the Reserve Bank of New Zealand and Cecilia Skingsley from Bank for International Settlements sermon the emergence of integer assets and central slope integer currencies (CBDC) and the risks associated with the caller technology.

The Hong Kong Monetary Authority main discussed the innovations and benefits of blockchain exertion and its probable interaction connected cardinal banks. Yue said that successful the agelong word CBDCs and stablecoins tin connection a much businesslike and cost-effective mode of transactions. However, helium noted that with immoderate caller exertion determination are definite risks associated with it beryllium it innovation oregon operational risks.

Yue noted that blockchain is simply a decentralized exertion by nature, frankincense it is acold much analyzable to mitigate on-chain risks. This is the crushed regulators should absorption connected off-chain activities. He explained:

“We tin commencement with regulating off-chain activities similar regulating virtual plus exchanges. Hong Kong volition soon present not conscionable AML (anti-money laundering) facet but besides capitalist protection.”

He besides revealed that the Hong Kong authorities is moving connected abstracted regulations aligning with planetary statement connected regulating the stablecoin industry.

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Changyong Rhee, politician of the Bank of Korea, was not truthful optimistic astir the aboriginal of blockchain technology, particularly successful the monetary sector, successful airy of the caller crypto contagions. He said that helium was not truthful definite whether “we are seeing the payment of this technological improvement recently,"

"I was much affirmative before, but aft seeing the Luna, Terra, and present the FTX issues. I don't cognize [if] we volition spot the existent payment of this caller technology, astatine slightest for monetary policy," said Rhee.