- The Hong Kong Monetary Authority and the Financial Services and Treasury Bureau jointly launched a public consultation on stablecoins.
- The consultation aims to gather insights on a proposed legislative framework for regulating issuers of stablecoins.
- The proposed framework, based on a risk-based and agile approach, includes a licensing regime.
The Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau (FSTB) are collecting public comment on a proposed legal framework for regulating stablecoin issuers.
Hong Kong Proposes
As stablecoins are increasingly playing a vital role in bridging the gap between traditional finance and virtual assets, the Hong Kong government thinks it is necessary to regulate them. Utilizing a flexible and risk-based approach, the suggested framework aims to control threats to monetary and financial stability.
The proposal establishes a licensing system that requires fiat-referenced stablecoin (FRS) issuers to fulfill particular requirements in order to get a license from the Monetary Authority (MA). Furthermore, the proposed framework stipulates that only certain licensed firms may provide FRs, and ret…
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