Summary
Hong Kong plans to propose legislation on stablecoins and virtual asset over-the-counter services, requiring licensing for providers. Some stablecoin issuers may need to register with the Hong Kong Monetary Authority. The goal is to encourage innovation while addressing risks like money laundering. The government is committed to enhancing the regulatory framework to protect investors. Hong Kong is aiming to become a crypto hub while avoiding collapses like FTX and Terra.
Key Points
1. Hong Kong lawmakers are proposing legislation on stablecoins and virtual asset over-the-counter (OTC) services.
2. Virtual asset services providers may be required to be licensed by the Commissioner of Customs and Excise (CCE) under the proposed legislation on OTC services.
3. Some stablecoin issuers in Hong Kong may be required to register with the Hong Kong Monetary Authority under a different regulatory proposal, with a focus on prohibiting the advertising of unlicensed issuers’ stablecoin issuance.