The Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have made a decision to create legislation for local stablecoins, Bloomberg has reported.
On July 17, the two financial institutions submitted an update to their initial proposal to establish a regulatory framework for fiat-referenced stablecoin (FRS) issuers in Hong Kong.
Subscribe to our Telegram channel to get weekly short digests about events that shape the crypto world
This announcement follows a two-month consultation period, which ended in February, during which 108 submissions were received from various stakeholders, including market players, industry associations and professional organizations.
Most participants agreed that a regulatory framework is needed for FRS issuers to manage potential risks to monetary and financial stability, while ensuring transparent and effective supervision.
The proposed regulatory requirements and enforcement provisions received general support from respondents, along with some additional suggestions.