The Hong Kong Monetary Authority (HKMA), Hong Kong’s central banking institution, launched a questionnaire to measure public opinion on crypto-asset and stablecoin rules. By 2023-24, the state-backed regulator plans to create a regulatory framework.
The HKMA’s “Discussion Paper on Crypto-assets and Stablecoins” highlights the drastic growth of the stablecoin market in terms of market capitalization since 2020, as well as the concurrent regulatory recommendations made by international regulators such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), and The Basel Committee on Banking Supervision (BCBS).
According to the HKMA, the present size and trading activity of crypto-assets may not present an imminent danger to the global financial system’s stability.
The HKMA expects stakeholders to submit their responses by March 31, 2022, with the goal of “introducing the new system no later than 2023-24.”
Finally, the regulator claimed that payment-related stablecoins have a greater potential for integration into the mainstream financial system or even day-to-day commercial and economic operations.
As a result, the Hong Kong Monetary Authority (HKMA) is contemplating increasing the scope of the Payment Systems and Stored Value Facilities Ordinance (PSSVFO), which controls the legality of financial items.
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