STABLECOINS ISSUER REGULATION MOOTED

The Stablecoins Bill, which seeks to put in place a regulatory regime for issuers of fiat-referenced stablecoins (FRS) in Hong Kong, was published in the Government Gazette today.

The Government made the announcement and explained that bill aims to enhance the regulatory framework for virtual asset (VA) activities, by addressing the potential financial stability risks posed by FRS, ensuring adequate user protection, and harnessing the potential benefits of VAs and their underlying technologies.

Under the proposed licensing regime, any person issuing FRS in Hong Kong in the course of business, issuing FRS that purport to maintain a stable value with reference to Hong Kong dollars in the course of business, or actively marketing the person's issue of FRS to the public of Hong Kong must be licensed by the Monetary Authority (MA).

The bill also seeks to provide the MA with necessary supervision, investigation and enforcement powers for the regime’s effective implementation.

Secretary for Financial Services & the Treasury Christopher Hui said that the legislative proposal is essential for Hong Kong in fulfilling its obligations as a member of the Financial Stability Board.

“Adhering to the ‘same activity, same risks, same regulation’ principle, this risk-based proposal aims to promote a robust regulatory environment, which is in line with Hong Kong's approach to VA development.”

The bill will be introduced into the Legislative Council for first reading on December 18.

---

PREVIOUSNEXT