"Hong Kong's eTradeConnect, a blockchain-based interbank trade finance platform led by HKMA, is set to close by the end of August. Launched in 2018 to enhance trade finance efficiency, it faced challenges due to overlapping services and low participation from banks and regulators. #BlockchainFinance #HKMA #TradeFinance"

Hong Kong Monetary Authority (HKMA) has urged major banks including HSBC and Standard Chartered to accept crypto exchanges as their clients.

#HKMA #crypto #crypto2023

Hong Kong's New Regulations for Stablecoins. 🇭🇰🪙

Stablecoins are digital tokens pegged to fiat or assets, aiming to reduce volatility. Used in the virtual asset ecosystem, they carry risks like financial stability, consumer protection, and anti-money laundering, especially when widely adopted or connected to traditional finance.

To address these challenges, Hong Kong's central bank, the Hong Kong Monetary Authority (HKMA), has recently announced its plans to regulate stablecoins in the city. Here are some key points from the HKMA's legislative proposals:

- The HKMA will introduce a licensing regime for stablecoin issuers, who will have to meet certain eligibility criteria, such as having a physical presence in Hong Kong, having adequate capital and liquidity, and complying with risk management and consumer protection rules.

- The HKMA will also impose restrictions on the types of stablecoins that can be offered to retail investors, such as requiring them to be fully backed by fiat currency or other high-quality liquid assets, and to be redeemable at par value at any time.

- The HKMA will establish a sandbox environment for stablecoin issuers to test their products and services in a controlled setting, and to facilitate dialogue and feedback between the regulators and the industry.

- The HKMA will adopt a transitional period before implementing the new regulations, during which it will consult with the stakeholders and define the detailed requirements and standards for compliance.

The HKMA's move is in line with the global trend of enhancing the oversight and supervision of stablecoins, as recommended by the Financial Stability Board and other international bodies. By introducing a clear and comprehensive regulatory framework, Hong Kong aims to foster financial innovation while safeguarding the stability and integrity of its financial system.

#HongKong #HKMA #Stablecoins

Central bank digital currency project #mBridge is preparing to welcome new members.

_The #mBridge project may soon see a major expansion, according to the chief executive of the Hong Kong Monetary Authority #HKMA , Eddie Yue. He outlined plans for a central bank digital currency #CBDC project in a speech in Shanghai. Yu said tests have shown that mBridge enables faster, cheaper and more transparent cross-border payments. Note that the project began in 2021 with the participation of the Hong Kong SAR Authority, the central banks of China, Thailand and the United Arab Emirates, in addition to commercial banks from those jurisdictions and the Innovation Center at the Bank for International Settlements.

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Stamina Gauge! Bitcoin Statement from Hong Kong's Top Executive.

Hong Kong Securities and Futures Commission (SFC) chairman Julia Leung emphasized Bitcoin's durability as an alternative asset in her speech at the Greenwich Economic Forum. Leung noted Bitcoin's ability to survive despite multiple boom and bust cycles over the past 15 years. While central bankers and economists often argue that cryptocurrencies like Bitcoin and Ethereum lack intrinsic value, Leung noted that the durability of these assets and the Distributed Ledger Technology (DLT) behind them is undeniable.

These statements by Leung coincide with the new licensing regime introduced by the SFC for cryptocurrency exchanges. These new regulations now require these platforms to obtain a license to serve individual investors in Hong Kong.

However, these regulatory changes have drawn criticism from some quarters. Hong Kong lawmaker Duncan Chiu said the regulations were overly strict and discouraged major global exchanges from entering the Hong Kong market, negatively impacting market confidence.

Julia Leung stated that although they support the development of the Web3 ecosystem in Hong Kong, this should not be misunderstood as an endorsement of the crypto asset (VA) class. Leung stated that cryptocurrencies are highly speculative and subject to extreme price volatility. To maintain and balance investor demand, #SFC has taken comprehensive measures to protect investors in this volatile market.

Looking ahead, the SFC is preparing for legal regulations for stablecoins. Leung noted that the Hong Kong Monetary Authority (#HKMA ) recently completed a consultation on a proposed regime for stablecoin issuers. These new regulations will require issuers to provide full backing with high-quality, highly liquid reserve assets.

The move is seen as part of a broader effort to bring stability and trust to the cryptocurrency landscape in Hong Kong. SFC also takes part in Project Ensemble, a tokenization initiative launched by the HKMA to explore the potential of a central bank digital currency (#CBDC )
$BTC