Hong Kong regulators have announced the successful completion of a consultation phase on stablecoin regulations, with stakeholders submitting a total of 108 responses. The regulators have stated that the proposed regulatory requirements have received positive feedback from stakeholders.
The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued consultation conclusions on July 17 regarding the introduction of a stablecoin regulatory regime. Over the course of the two-month consultation period, a wide range of stakeholders, including industry associations, professional organizations, and market participants, submitted their views.
The majority of stakeholders expressed support for the implementation of a regulatory regime to oversee fiat-referenced stablecoin (FRS) issuers. Such a regime would ensure the effective management of potential risks to monetary and financial stability. The FSTB and HKMA have confirmed that the proposed regulatory requirements have been positively received by stakeholders.
Christopher Hui, the Secretary for Financial Services and the Treasury, emphasized that the proposed stablecoin regulatory regime not only aligns with international standards but also mitigates risks. Hui stated, “By establishing a licensing regime for FRS issuers in addition to the existing regulatory framework for VA trading platforms, we can further strengthen the regulatory framework for virtual assets in Hong Kong. This will effectively address potential financial stability risks associated with FRS issuance activities.”
Eddie Yue, Chief Executive at the HKMA, praised the comments and general support received from stakeholders regarding the proposed regulatory regime. He emphasized the importance of a well-regulated environment in promoting the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.
Before finalizing the legislative proposal for the regulatory regime, the two regulators will incorporate the views and suggestions provided by respondents during the consultation phase. Additionally, the HKMA is currently reviewing applications for the stablecoin issuer sandbox, and a list of participants will be announced in the near future.
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