Hong Kong’s central bank, Hong Kong Monetary Authority, has published a discussion paper soliciting feedback on the new regulatory measures it has proposed to counter the risks of cryptocurrencies, with a key focus on stablecoins.
The central banking institution has called for views from the general public and industry insiders as it looks to adopt a regulatory framework by 2024. Based on the feedback, further documentation on the regulatory framework may be published between 2022-2023, to introduce a new regulatory regime by the aforementioned time.
The discussion paper has laid out the regulator’s possible approach on crypto assets, taking into account “the international recommendations, the market and regulatory landscape locally and in other major jurisdictions, and the characteristics of payment-related stablecoins.”
Mr. Eddie Yue, the Chief Executive of the HKMA, said in the press release:
“The rapid development of crypto-assets, particularly stablecoins, is a topic of keen attention in the international regulatory community as it presents possible risks regarding monetary and financial stability. The HKMA has been closely tracking the relevant development and would like to proactively share our thinking with the public and industry.”
Interested readers can view the paper here.