Government welcomes passage of the Stablecoins Bill, establishing a licensing regime for fiat-referenced stablecoins in Hong Kong, to enhance regulatory framework on virtual-asset activities, foster financial stability and innovation, and provide better protection for investors. The bill aims to establish a risk-based, pragmatic, and flexible regulatory environment.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SFC Regulation of Virtual Asset Trading Platforms: The Emerging Hong Kong Framework
SFC proposes new regulation of virtual assets through licensing of operators of cryptocurrency and other digital asset trading platforms
Market Misconduct Tribunal: A Guide to Penalties and Other Consequences for Misuse of Insider Information
Market Misconduct Tribunal proceedings for mishandling of insider information can result in fines and disgorgement orders
SPOTLIGHT ON
FAMILY OFFICES
The Hong Kong Government has welcomed the passage of the Stablecoins Bill by the Legislative Council on 21 May, aimed at establishing a licensing framework for fiat-referenced stablecoins ("FRS") in the territory.
Under the new regime, issuers of FRS in Hong Kong or those that maintain a stable value tied to the Hong Kong dollar must obtain a license from the Monetary Authority ("MA"), satisfying stringent requirements in reserve asset management, redemption processes, and segregation of client assets.
The regulatory requirements also encompass anti-money laundering and counter-terrorist financing measures, risk management, disclosure, auditing, and fitness and propriety. Further consultations will be held on detailed regulatory standards.
The Ordinance ensures better protection for the public and investors by allowing only licensed institutions to issue FRS, and only these can be offered to retail investors. Advertising for licensed FRS is strictly regulated to prevent fraud.
The Secretary for Financial Services and the Treasury, Mr. Christopher Hui, underscored that the Ordinance adheres to a risk-based approach, aligning with international standards and supporting Hong Kong’s status as an international financial center.
Mr. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, highlighted the Ordinance’s risk-based and flexible regulatory approach, fostering healthy and sustainable development of the stablecoin and broader digital asset ecosystem.
The Ordinance is set to come into effect this year, providing sufficient time for industry understanding of the licensing regime, and includes a transitional arrangement for smooth license applications and business adjustments.
View the full article:Source
