Hong Kong is considering accepting and regulating fiat-referenced stablecoins (FRS) through a proposed licensing regime. The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have published a consultation paper outlining the requirements for obtaining a license. The proposed criteria include full backing of stablecoins with reserves, segregation and safekeeping of assets, disclosure, and regular reporting. Algorithmic stablecoins will not be eligible for a license. Stablecoin issuers will also need to establish a registered office in Hong Kong with key personnel in place. The Secretary for Financial Services and the Treasury, Christopher Hui, believes that this licensing regime will help manage the risks associated with stablecoin development and facilitate the growth of the Web3 ecosystem in Hong Kong.
This move comes after the HKMA and the Securities and Futures Commission (SFC) expressed their readiness to receive applications for the authorization of various funds, including Virtual Asset Spot exchange-traded funds (VA Spot ETFs). The aim is to further develop the cryptocurrency market in Hong Kong. The consultation period for the proposed licensing regime ends on February 29, 2024.
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| Information | Details |
|---|---|
| Geography | Asia |
| Countries | ðŸ‡ðŸ‡° |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Christopher Hui |
| Companies | Virtual Asset Spot exchange-traded funds, Financial Services and the Treasury Bureau, Hong Kong Monetary Authority, Crypto futures ETFs, Securities and Futures Commission |
| Currencies | None |
| Securities | None |
