Hong Kong Advances Stablecoin Legislation After Public Feedback

Hong Kong Government Moves Forward with Stablecoin Regulation

At the recent 2024 Hong Kong SmartCon conference organized by ChainLink, significant updates were announced regarding the regulatory framework for stablecoins in Hong Kong. Joseph Chan, the Deputy Secretary for Financial Services and the Treasury, revealed that the government has successfully completed a public consultation process.

Outcome of Public Consultation

Over a two-month period, the Hong Kong government received feedback from more than 100 stakeholders and market participants. This comprehensive consultation aimed to gather diverse perspectives on stablecoin regulations, reflecting a commitment to engaging with the community.

Legislative Proposals Ahead

The relevant government departments are currently in the process of finalizing the necessary preparations. A draft legislation for stablecoin regulation is expected to be submitted to the Legislative Council by the end of this year, marking a crucial step towards establishing a regulatory framework that governs the use and issuance of stablecoins.

Next Steps: Over-the-Counter Virtual Asset Trading

In addition to stablecoin regulations, the Hong Kong government has plans for a second round of public consultation focused on regulatory proposals for over-the-counter (OTC) virtual asset trading. This indicates their proactive approach to ensuring a robust regulatory framework surrounding various aspects of digital assets.

Licensing Regime for Virtual Asset Custodians

Moreover, a proposed licensing regime for virtual asset custodians will also be put forward, designed to guarantee the secure storage of digital assets. This plan emphasizes the government’s dedication to aligning with international standards in digital currency management.

Conclusion: A Positive Step for Crypto Regulations

The proactive measures undertaken by the Hong Kong government signal a positive shift towards clear regulations in the cryptocurrency sector. By prioritizing stakeholder engagement and addressing various facets of digital assets, Hong Kong aims to create a secure and compliant environment for the evolving landscape of virtual currencies.