Hong Kong to Enact Crypto Regulation for Stablecoins and OTC Services

The Hong Kong government is set to introduce legislation aimed at regulating stablecoin issuers and virtual asset over-the-counter services, following public consultations.

• Hong Kong Financial Services Secretary Christopher Hui announced plans to propose legislation on stablecoins and virtual asset over-the-counter (OTC) services.
• The proposed legislation will require some stablecoin issuers to register with the Hong Kong Monetary Authority and may mandate licensing for virtual asset service providers.
• Public consultations on the regulatory proposals for stablecoins and OTC services are open until February 29 and April 12, respectively.
• The regulations aim to encourage virtual asset innovations while addressing risks related to monetary and financial stability, consumer protection, and anti-money laundering.
• Hong Kong's efforts to become a crypto hub include stringent measures against crypto-related crimes, with a significant increase in cases over recent years.

3 Articles

Blockworks CoinDesk The Block