In December 2024, Hong Kong government left a proposed Stablecoin Bill to the Legislative Council when it tries to better polise the industry of $ 220 billion. Legislators recently met to discuss the bill for the first time, with some important officials from the government invited to share their views on Stableco’s future in the city state.
The dedicated Legco Stablecoin Committee Invited Francis Ho and Tanna Chong, Deputy Secretary for Financial Services at the Treasury, to offer their views on Stablecoin regulations. Daryl Ho and Ernest Ho, CEOs at Hong Kong Monetary Authority (HKMA), also participated in the session together with officials from the Department of Justice (DOJ).
The bill Assigns jurisdiction of Stablecoins and their issuers to HKMA, the city’s de facto central bank. Issuers must receive a license from the guard dog, with some of the requirements as a paid share capital of $ 3.2 million and a segregated pool of reserve assets, which must be of “high quality and high liquidity with minimal investment risk.”
During the sitting of the committee, Treasury’s Ho Siu-Hong doubled the need for StableCoin issuers to receive a license, reports A local outlet. The city’s supervisory authorities, led by HKMA, would in turn strive to ensure that the value of Reserve resources is “at least equal to nominal value of the circulating legal currency Stablecoins at any time and must be properly separated and preserved.”
One of the prominent features of Hong Kong’s regulations “Crypto” has been the city’s consultation with industry stakeholders, and the Stablecoin framework was no different. HKMA’s CEO Eddie Yue stated in December that the central bank had “extensive consulted” virtual asset service providers (VASP); in one separately Sub -Committee for Legco Discuss digital assets last week repeated Treasury’s Joseph Chan this approach and found that Securities Watchdog would set up a new panel for VASPs “to ensure that their opinions and needs are fully considered.”
Hong Kong is one of many jurisdictions that rush to regulate Stablecoins as the appearance of the sector is increasing globally. Taiwan’s Financial Supervisory Commission (FSC) recently proposed so that the state’s commercial banks can issue and manage Stablecoins. The framework would require global issuers, such as Tether and Circle, to obtain local authorization for its Stablecoins, a requirement similar to the European Union under markets in the Crypto -Assets (Mica) regulation, which Tether has struggled to follow.
Watch: It’s time for regulation to enable blockchain growth
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