🔒 Hong Kong advances in the regulation of stablecoin issuers 🏦
The Legislative Council of Hong Kong has introduced a new bill to regulate stablecoin issuers, following the implementation of a licensing system for virtual asset trading platforms. Legislator Ng Kit Chuang highlighted that stablecoins are essential for the virtual asset infrastructure, facilitating both investments and cross-border payments.
The proposal suggests that stablecoin issuers must deposit their reserve assets in Hong Kong banks, which poses challenges for some issuers that do not comply with local regulations. To address this, communication efforts are being made with the government and the industry to find solutions, such as mutual recognition agreements or promissory notes between jurisdictions.
The regulation aims to ensure the stability and transparency of stablecoins.
Solutions are being explored to align local regulations with international practices.
The goal is to protect Hong Kong citizens while fostering innovation in the cryptocurrency sector.
This initiative reinforces Hong Kong's commitment to a robust regulatory framework for the cryptocurrency sector, ensuring the protection of investors and financial stability. 📜 #Regulation #Cryptocurrencies #HongKong
