Hong Kong Financial Services and the Treasury Bureau, Hong Kong Monetary Authority: Will continue to collaborate with other regulatory bodies to jointly establish a consistent regulatory framework for virtual assets in Hong Kong

ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority jointly published a consultation summary on the legislative proposal for the regulation of fiat-backed stablecoin issuers in Hong Kong.

It was mentioned that, considering the stablecoin sector is still in its infancy, a significant portion of respondents agreed to establish new legislation for the implementation of a regulatory regime for fiat-backed stablecoin issuers, as well as the proposal to exclude fiat-backed stablecoin issuance from the regulatory framework for relevant securities and stored value payment instruments. The Hong Kong Monetary Authority will continue to collaborate with other regulatory bodies to build a consistent regulatory framework for virtual assets in Hong Kong, avoiding regulatory arbitrage. Most respondents support the requirement that the total value of reserve assets for fiat-backed stablecoins must always be maintained at full reserve, recognizing this as a core element supporting the stability mechanism of stablecoins.