The notable quest by Hong Kong to become the global nucleus of Web3, stablecoin, and virtual assets is facing some legislative scrutiny for transparency. Principally, some questions have arisen that concerns the regulatory sandbox for stablecoin issuers.
Legislative Concerns Over Hong Kong Stablecoin Transparency
The scrutiny is happening in the midst of the Hong Kong authorityâs determination to structure a comprehensive framework for crypto regulation. However, a member of the legislative council Darwin Chiu has raised concerns about the transparency of the Hong Kong Monetary Authority (HKMA) sandbox initiative.
Notably, the HKMA unveiled the sandbox in March and has now announced that three different groups have been picked for pilot. However, Chiu is doubtful about the transparency of the application process, the timing of the launch and the timeframe before licensing will be given officially.
Hong Kong Treasury Bureauâs Regulatory Proposals
Earlier, the Treasury Bureau declared that regulatory proposals for issuers of stablecoins were in the final stages. This is aimed at implementing the regulatory framework within the shortest possible time. As per scheduling, the government is optimistic of passing a draft regulation to the Legislative Council by year-end.
Chen Haolian, Deputy Director of the Treasury Bureau maintains that the licensing system for fiat currency stablecoin users will sync with the digital asset regulatory framework in line with global standards.
As Hong Kong continues to march towards developing its Web3 and virtual asset ecosystem, lawmakers are keen on compliance with regulatory standards and transparency. One of the lawmakers, Wu Jiezhuang is calling on the government to publish a Web3 development roadmap to not only boost investorsâ confidence but also provide a clear path for the industry.
Unveiling New Digital Assets
Market observers believe that the stablecoin sandbox program is a critical step towards achieving all of these particularly if doubts about its implementation and industry impact is sorted out.
Meanwhile, the Hong Kong Stock Exchange, SEHK is set to unveil the first Bitcoin inverse product in Asia. The launch scheduled for July 23 will coincide with anticipated launch of spot Ethereum ETF in the United States on the same day. The CSOP Bitcoin Futures Daily (-1x) Inverse Product, managed by CSOP Asset Management Limited, is intended to provide sophisticated investors with a new tool for short-term trading or hedging.
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