PANews reported on July 19 that according to the Hong Kong Exchange News, Hong Kong Financial Services and Treasury Bureau Deputy Secretary Chan Ho-lim said at the Legislative Council Web3 and Virtual Asset Development Subcommittee meeting that the authorities are currently drafting the second draft of the regulations on the implementation of the legal currency stablecoin issuer supervision system in Hong Kong, and strive to submit the draft to the Legislative Council for deliberation before the end of this year. Chan Ho-lim said that the system has a transition period, and issuers with meaningful and substantial issuance business can continue to operate during the 6-month "non-violation period" after the system takes effect, but must submit a license application within the first 3 months, otherwise they must orderly terminate their business before the end of the 4th month. The authorities will strengthen investor education and information release.
At the meeting, HKMA Assistant Director (Monetary Management) Ho Hon Kit pointed out that the list of license applicants will be published immediately by the HKMA for public reference. The HKMA will also actively cooperate with the SFC and the police. He also pointed out that the regulations regulate the issuance of Hong Kong dollar stablecoins and have extraterritorial effects. They will supervise foreign issuers through mutual assistance with other regional regulators. In the long run, they will cooperate with local regulators to establish a passport system. Ho Hon Kit said that the virtual asset ecosystem is increasingly connected with traditional finance, and risks may be transmitted to the traditional financial system, so supervision is needed. The policy goal is to ensure financial stability, protect users, and promote the sustainable development of the industry. Supervision is risk-based and in accordance with international standards. It is hoped that Hong Kong can create a platform for fair competition.