The Hong Kong Legislative Council has approved the long -awaited Stablecoins bill, establishing a license regime for Stablecoin issues (FRS) referenced by Fiat. This Legislative movementAnnounced by the Hong Kong government on May 21, it aims to strengthen the regulatory supervision of virtual asset activities, both financial stability and innovation in the region.
Ordinance to regulate Stablecoin’s ads and emitters
The recently promulgated Stablecoins ordinance Mandates That any entity that issues an FRS within Hong Kong, or any FRS that affirms to Mintain a stable value against the Hong Kong dollar, must obtain a license from the monetary authority (MA).
The license requirements will focus on several critical areas, including the management of reserve assets, the adequate segregation of customer assets and a robust stabilization mechanism. In addition, issuers must ensure that they can process the reimbursement requests of Stablecoin holders in a couple in reasonable conditions.
According to the Government Declaration, these regulations are designed to improve public protection and safeguards of investors. According to the ordinance, only graduated institutions may sacrifice FRS In Hong Kong, and retail investors will only have access to FRS issued by thesis license entities.
To combat fraud and scams, the Ordinance stipulates that only Stablecoin emissions with Fiat license will be allowed, ensuring that the public is protected from promotional flagestation materials.
Hong Kong’s commitment to digital assets
Mr. Christopher Hui, Secretary of Financial Services and the Treasury, emphasized that the Ordinance follows the principle of “the same activity, the same risks, the same regulation.”
This risk -based approach is aligned with international regulatory standards and aims to create a solid basis for Hong Kong Digital Assets MarketUltimately, the promotion of the sustainable development of the industry while protecting the rights of users.
Eco’s thesis feelings, Mr. Eddie Yue, executive director of the Monetary Authority of Hong Kong, highlighted the pragmatic and flexible nature of the ordinance. He pointed out that a robust regulatory framework would promote healthy and responsible growth within the Hong stable and the broader digital assets ecosystem.
The Stablecoins ordinance is expected to enter into force at the end of this year, which allows the industry for sufficient time to become familiar with the new license requirements. Transition agreements will also be provided to help companies request licenses and adapt to the Regulatory landscape.
Looking towards the future, the Hong Kong government is still committed to promoting the virtual asset sector. After the establishment of the regulatory regime for commercial platforms and the issuers of Stablecoin, the Government plans to initiate consultations on free sales services (OTC) and custody for digital assets, ALH releases a second dop of policies.
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