Hong Kong Legislative Council Discusses Stablecoin Regulations and Licensing
Hong Kong is advancing its regulatory framework for stablecoins following a meeting of the Legislative Council Committee. Key points include:
- Proposed regulations for stablecoins discussed, aimed at linking crypto with traditional financial systems.
- A bill submitted for first reading in December 2024.
- Stablecoin issuers must obtain licenses from the Hong Kong Monetary Authority (HKMA), adhering to AML and CTF standards.
- Regulators emphasized the importance of sufficient reserves for stablecoins to protect users.
Fast-Track Licensing for Crypto Firms
The Hong Kong government plans to streamline licensing for crypto trading platforms to attract firms and investors. Highlights include:
- Joseph Chan, Acting Secretary for Financial Services, announced efforts to expedite the licensing process.
- Securities and Futures Commission (SFC) will enhance regulatory oversight through a consultative panel.
- The initiative aims to position Hong Kong as a leading jurisdiction for crypto businesses.
Recent Developments
Since introducing its crypto licensing regime in 2023, Hong Kong has licensed several exchanges, including OSL and HashKey, allowing them to offer retail trading services. The focus extends to developing crypto custody services as part of the evolving ecosystem.