According to local media standardHong Kong is making strides towards creating a clear framework for stablecoins pegged to traditional financial assets.
The Hong Kong Monetary Authority (HKMA) aims to implement the proposal. comprehensive Develop a stablecoin regulatory framework within 18 months.
Evolution of Stablecoin Regulation
Hong Kong’s progressive approach to stablecoin regulation has made it stand out as a more welcoming environment for cryptocurrencies, potentially attracting market participants from countries like the United States, where regulation is more stringent. be
according to tech crunch, stablecoins must always be fully backed by high-quality, highly liquid assets, and algorithmically stabilized tokens like UST are not accepted. Full text available at: HKMA website.
This rapid approach to regulating stablecoins could have an impact on the global cryptocurrency landscape as it provides a robust and transparent legal framework that could set a precedent for other jurisdictions.
The move is in line with the city’s overall financial direction, as the number of fintech companies in Hong Kong has increased dramatically over the past five years. The government also said it was working with the Bank of Thailand to expand the faster payment system to more industries. standard.
Undersecretary of Financial Services and Ministry of Finance Joseph Chan Holim told local news media:
“HKMA is working with the Bank of Thailand to develop a faster payment system and is focusing on developing Web 3.0 in Hong Kong.”
Hong Kong: China’s Cryptocurrency ‘Testbed’
As Jason Fang of Sora Ventures has noted in numerous articles, Hong Kong is emerging as a “testbed” for cryptocurrency regulation in the region. crypto slate podcast.
At the same time, “Beijing Internet 3.0 Innovation and Development White Paper (2023)” liberated In May, Chaoyang District highlighted Web3 and Metaverse’s commitment to innovation, with an annual investment of 100 million yuan to support the Web3 industry ecosystem.
Earlier this year, Hong Kong Finance Minister Paul Chan announced a new cryptocurrency regulatory framework that includes requirements for virtual asset providers similar to traditional financial institutions. The framework went into effect on June 1, resulting in concerns that there would not be enough people in the region to cover demand and that there would be a shortfall of 100,000 qualified workers. rice field.
As Hong Kong seeks to become a hub for cryptocurrency innovation, the Hong Kong Securities and Futures Commission (SFC) has decided to appoint a responsible officer (RO) for cryptocurrency exchanges due to the lack of experienced ROs in the field. It is trying to alleviate labor shortages by relaxing requirements. .
Impact of Stablecoin Framework
The development of a stablecoin regulatory framework is also aligned with Hong Kong’s focus areas. web 3 Green technology is one of them, as the administration plans to accelerate the transformation of the city into a global green technology and financial hub.
Deputy Treasury Secretary Michael Wong Wailung said: standard,
“The administration will accelerate Hong Kong’s development as an international green technology and financial hub by cooperating with financial regulators and the areas of climate disclosure and carbon market training,” it said.
The future of stablecoins in Hong Kong looks progressive as the city seeks to establish a clear, comprehensive and risk-based approach to regulating this emerging asset class.
As Hong Kong continues to establish itself as a global fintech hub, the stablecoin regulatory framework could be crucial in shaping the global digital financial landscape.
