Moments ago, the Hong Kong Monetary Authority (HKMA) issued a discussion paper on crypto-assets and stablecoins, seeking for public opinion regarding what regulatory approach it should take.
Hong Kong Seeks Public Opinion In Discussion Paper
The discussion paper confirms that Hong Kong will approach regulations only after carrying out due diligence. This means that, among other things, international recommendations will be considered. The HKMA will also be considering the present situation on the regulatory landscape (both locally and globally).
Meanwhile, HKMA highlighted 3 broad perspectives from which it intends to approach the crypto industry. They are; payment-related stablecoins, investor protection and how approved institutions will deal with digital assets
Interestingly, the paper focused more on payment-related stablecoins. In fact, the bank is hoping that by July, a new regulatory framework must have been ready for crypto assets. Somehow, this fast-tracked move might not be unrelated to Hong Kong hoping to become a major hub for the burgeoning crypto sector ahead of Singapore.
Q & A Section
It is however worthy to note that Hong Kong is trying to know the exact thoughts and views of shareholders. And to help them do this, the HKMA ensured to create a questions and answers section in the paper.
According to the CEO of the HKMA Mr Eddie Yue, stablecoin is a major topic on most global regulatory fronts. He also admits that stablecoins poses potential risks when it comes to financial and monetary stability. Regardless of that however, there is inevitably a case for the rapid development of crypto-assets, especially stablecoins.
Additionally, Yue says the HKMA has been closely monitoring the relevant development and now wants to share its thinking with the public and industry at large.
“We look forward to hearing the feedback from stakeholders and will draw up a risk-based, pragmatic and agile regulatory regime on this front.”