1 year ago
Hong Kong Monetary Authority (HKMA) and Financial Services and the Treasury Bureau person released a nationalist consultation insubstantial to stitchery residents’ opinions connected the projected regulatory authorities for stablecoin issuers. The HKMA besides announced the instauration of a sandbox statement whose intent volition beryllium to convey supervisory expectations and guidance connected compliance to prospective stablecoin issuers.
HKMA’s Sandbox Arrangement
On Dec. 27, the Hong Kong Monetary Authority (HKMA) and Financial Services and the Treasury Bureau (FSTB) released a nationalist consultation insubstantial to stitchery residents’ opinions connected the projected regulatory authorities for stablecoin issuers. The consultation play began connected the time of the announcement and volition extremity connected Feb. 29, 2024, the 2 bodies said successful a joint statement.
In summation to releasing the consultation paper, the HKMA announced that it volition present a sandbox statement whose intent volition beryllium to convey supervisory expectations and guidance connected compliance to prospective stablecoin issuers. The sandbox statement volition besides alteration the regulator to get prospective stablecoin issuers’ perspectives connected the projected regulatory requirements.
Commenting connected the 2 developments, Christopher Hui, the Secretary for Financial Services and the Treasury, said:
With the implementation of the licensing authorities for VA [virtual assets] trading platforms from June this year, the legislative connection to modulate FRS [fiat-referenced stablecoin] is different important measurement facilitating Web3 ecosystem improvement successful Hong Kong.
Hui added that by having the indispensable licensing and enforcement parameters, Hong Kong volition beryllium capable to oversee stablecoin issuers successful enactment with planetary standards.
Eddie Yue, the CEO of HKMA, portion his enactment is supportive of innovation, it is inactive required to enactment successful spot “guardrails and standards to alteration the long-term, sustainable, and liable improvement of the virtual plus ecosystem.”
Yue added that the nationalist consultation process, arsenic good arsenic the sandbox arrangement, amusement that the HKMA is connected people to execute this goal. The associated connection said the consultation insubstantial tin beryllium recovered connected the websites of some the FSTB and the HKMA.
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