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Hong Kong’s financial authorities have introduced a new regulatory framework for stablecoin issuers, aimed at safeguarding financial stability within the region. The proposed legislation has garnered significant backing from the public and various stakeholders.
The Hong Kong Financial Services and the Treasury Bureau (FSTB), in collaboration with the Hong Kong Monetary Authority (HKMA), has released a legislative proposal to establish a regulatory framework for issuers of fiat-referenced stablecoins (FRS).
This new licensing framework for stablecoins will enable regulators to address potential risks and bolster monetary and financial stability in the region, while also ensuring transparency for FRS issuers. This decision followed a public consultation that yielded 108 proposals from a range of stakeholders, including market participants, industry associations, and other local financial entities.
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<pchristopher hui, secretary of the fstb, stated that new stablecoin licensing framework aims to enhance regulatory structure for virtual asset (va) trading platforms in hong kong. he noted will align with international standards and complement existing measures region. primary goal this initiative is reduce financial stability risks linked issuance stablecoins.
Eddie Yue, Chief Executive of the HKMA, highlighted that the proposed regulatory framework has received robust public support, indicating that the initiative will aid in the sustainable and responsible growth of the stablecoin ecosystem in Hong Kong.
The final legislative proposal for the stablecoin licensing framework is set to be presented to the Legislative Council this year. The FSTB and the HKMA have begun to evaluate applications for participation in a sandbox for stablecoin issuers to engage in the trial of the new regulations.
In the past four years, the transaction volume involving stablecoins has surged over 16 times, reaching an unprecedented $1.68 trillion per month in April 2024. This surge has prompted financial regulators across various nations to actively develop a legislative framework for stablecoin usage. Approximately 60% of countries regulate the stablecoin market, with new licensing rules for stablecoins recently implemented in the European Union and the UAE. Concurrently, analysts at the Bank for International Settlements (BIS) have advocated for the harmonization of regulatory requirements for stablecoin issuers to facilitate international usage.
Сообщение Hong Kong to Prepare New Licensing Regime for Stablecoins появились сначала на CoinsPaid Media.
