The Hong Kong Monetary Authority has pledged its commitment to fully regulate stablecoins-related activities before the end of 2024. The monetary authority announced the development in a statement released on Tuesday. In the announcement, the regulator revealed its plans to bring certain activities relating to stablecoins under the purview of a regulatory framework.
According to the Hong Kong monetary authority, it received a total of 58 submissions in response to the discussion paper on crypto and stablecoins regulations. As revealed, the discussion paper centered on crypto-assets and stablecoins from the industry, public bodies, businesses, professional organizations and individuals. Notably, the respondents pledged supports to the regulation of stablecoins through a risk-based and agile approach.
In addition, the respondents broadly supported the need to consider the latest market developments in designing the framework. Further, they suggested the need to draw references from the discussion of international regulatory bodies.
Notably, the Chief Executive of the Hong Kong Monetary Authority, Eddie Yue reacted to the development. According to Yue, an ethical regulatory environment will always assist in addressing financial risks posed by stablecoin. He further that it will also promote the sustainable development of the industry.
Yue expressed his gratitude to the respondents for their feedback on the discussion paper on crypto-assets. He also appreciated their general support for Hong Kong’s recommended regulatory principles. According to Yue, the monetary authority will consider the feedback received, latest market development and international discussion. Also, Yue noted that relevant stakeholders and market participant will be engaged towards arriving at the framework. The Chief Executive also expect the implementation of the regulatory arrangements before 2024.
Hong Kong consulting over retail access to crypto
Recall that in October 2022, Hong Kong began its consultation on retail access to crypto. As revealed, the regulator intends to determine the fate of retail investors who wants to venture into virtual assets. Also, the agency plans to make crypto accessible through exchange-traded funds.
According to Hong Kong Financial Services and Treasure Bureau, virtual assets are important means of investment. Notably, it believes the assets can be allocated through individuals or organizations. Also, the authority revealed that the launch of virtual asset in the city will aid the relationship between VA players and financial institutions in Hong Kong.