Hong Kong Treasury Bureau: The results of the consultation on the regulatory system for stablecoin issuers will be released

This site (120bTC.coM): According to comprehensive media reports, the Hong Kong Treasury Bureau and the Hong Kong Monetary Authority consulted the public on the legislative proposals for the "Regulatory System for Stable Coin Issuers" at the end of last year, and are expected to announce the consultation conclusion this week. Prepare for the Legislative Council's consideration of the bill.

"Blocker" reported in April this year that Hong Kong's virtual asset trading platform licensing system came into effect in June last year. In terms of regulating stable coins, the public consultation period ended at the end of February this year. After receiving opinions, the analysis will Publish the results of the consultation to prepare a bill for consideration by the Legislative Council.

The Hong Kong Treasury Bureau stated that in view of the important role of fiat currency stablecoins in Web3 and the virtual asset ecosystem, and the increasingly close connection between the traditional financial system and the virtual asset market, the government needs to target fiat currency stablecoin issuers Establish a regulatory system.

Specifically, the Treasury Bureau will supervise issuers of fiat currency stablecoins in a "risk-based" and "pragmatic" manner. The main requirements include:

• Reserve management and stabilization mechanisms, including the requirement that issuers must ensure Fiat stablecoins are "fully backed" by high-quality and highly liquid reserve assets

• Redemption requirements

• Regulatory requirements such as governance, knowledge and experience.

The Treasury Bureau also mentioned that in order to protect users of fiat currency stablecoins, it is recommended that only the following institutions can sell fiat currency stablecoins in Hong Kong or actively promote related services to the Hong Kong public:

• Licensed fiat currency stablecoins Coin issuer

• Approval authority (same bank)

• Licensed corporation

• Licensed virtual asset trading platform.

As for existing stablecoin issuers, the proposed regulatory system will also have corresponding transition arrangements.

The Treasury Bureau stated that it hopes that a regulatory system for fiat stablecoin issuers that is appropriate and in line with international regulatory recommendations can provide sufficient protection for fiat stablecoin users and address the potential risks posed by fiat stablecoins to monetary and financial stability, allowing the Hong Kong’s virtual asset ecosystem develops sustainably and responsibly.

In addition, the Hong Kong Monetary Authority has launched a "sandbox" for stablecoin issuers in March to communicate regulatory expectations to institutions interested in issuing fiat currency stablecoins in Hong Kong and collect participants' opinions on the proposed regulatory requirements.

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