Hong Kong, known as a global financial center, will establish a stablecoin regulatory framework by the end of next year, said Hong Kong Monetary Authority (HKMA) deputy director Chen Haolin.
In a recent public consultation, the HKMA sought comments on the introduction of stablecoins and expressed its commitment to gradually develop a comprehensive regulatory framework.
In a high-profile event, Chan and Lam highlighted the Hong Kong government’s active involvement in the virtual asset value chain. Earlier this year, the government successfully issued tokenized green bonds, showing its support for the industry. Furthermore, Hong Kong welcomes professionals and industry insiders to contribute to its thriving ecosystem.
The government’s emphasis on promoting the development of Internet 3.0 is evident as it previously issued a policy manifesto outlining a growth strategy for virtual assets.
Adhering to the principle of “same industry, same risks, and same rules”, Hong Kong strives to strike a balance between promoting stable growth of the industry and ensuring investor protection and compliance with international anti-money laundering standards.
Highlighting the remarkable growth over the past five years, Chen Ho-lim revealed that the number of fintech companies in Hong Kong has increased to more than 800.
These companies provide a wide range of services, including virtual banking, virtual insurance and virtual asset trading, further cementing Hong Kong’s position as a global leader in fintech.
The upcoming regulatory framework for stablecoins underscores Hong Kong’s commitment to maintaining a conducive and safe environment for digital assets. By setting clear guidelines and rules, the government aims to boost investor confidence and promote innovation in the digital asset industry.
The framework will address key issues of risk management, consumer protection and compliance with financial regulations, ensuring the long-term stability and sustainability of the stablecoin ecosystem.
Industry stakeholders and experts have welcomed Hong Kong’s proactive regulatory approach as it provides a solid foundation for the development of a robust and reliable stablecoin market.
The government is committed to maintaining an open dialogue with industry players through public consultation to ensure that the regulatory framework reflects the needs and aspirations of the wider ecosystem.
As the world continues to embrace digitization and explore the potential of blockchain technology, Hong Kong’s determination to establish itself as a leader in the virtual asset space is evident.
With its strategic location, robust financial infrastructure and forward-thinking approach, Hong Kong is well positioned to attract top talent and foster innovation in the ever-growing digital finance sector.
