HONG KONG Hong Kong proposes rules to license Stablecoin issuers The authorities in Hong Kong are exploring regulating stablecoins, as the latest consultation paper proposed the regulation of fiat-referenced stablecoins (FRS). If the proposed rules are implemented, stablecoin issuers in Hong Kong must obtain a local license. The authorities will accept feedback on the proposed regulations until 29 February 2024. The paper elaborated that the necessity for such regulations arrived after the collapse of TerraUSD, an algorithmic stablecoin, last year. Hong Kong’s proposed rules will not license the stablecoins. With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.
What The FinTech #163 - 8 Jan 2024
What The FinTech #163 - 8 Jan 2024
What The FinTech #163 - 8 Jan 2024
HONG KONG Hong Kong proposes rules to license Stablecoin issuers The authorities in Hong Kong are exploring regulating stablecoins, as the latest consultation paper proposed the regulation of fiat-referenced stablecoins (FRS). If the proposed rules are implemented, stablecoin issuers in Hong Kong must obtain a local license. The authorities will accept feedback on the proposed regulations until 29 February 2024. The paper elaborated that the necessity for such regulations arrived after the collapse of TerraUSD, an algorithmic stablecoin, last year. Hong Kong’s proposed rules will not license the stablecoins. With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.