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Hong Kong Treasury Bureau and Hong Kong Monetary Authority: Will work with other regulators to jointly build a consistent virtual asset regulatory fr

CointimeCointime2024/07/17 09:19
By:Cointime

The Hong Kong Treasury Bureau and the Hong Kong Monetary Authority jointly issued a consultation summary on the legislative proposal for the regulatory regime of fiat stablecoin issuers in Hong Kong. It was mentioned that considering the fact that stablecoins are still in their infancy, a considerable majority of respondents agreed to enact new legislation to implement a regulatory regime for fiat stablecoin issuers and to exclude the issuance of fiat stablecoins from the regulatory regime for securities and stored value payment instruments. The Hong Kong Monetary Authority will continue to work with other regulatory bodies to establish a consistent regulatory framework for virtual assets in Hong Kong to avoid regulatory arbitrage. The majority of respondents support the requirement for the reserve asset value of fiat stablecoins to maintain full reserves at all times and agree that this is a core element in supporting the stability mechanism of stablecoins.

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