HONG KONG, July 22, 2024 (GLOBE NEWSWIRE) - The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly released the “Consultation Conclusions - Legislative Proposal to Implement the Regulatory Regime for Stablecoin Issuers in Hong Kong” on July 17. In this consultation conclusion, the FSTB and HKMA have adopted two proposals put forward by CertiK, a leading Web3.0 security audit firm. Additionally, several proposals proposed by organizations such as Ant Group, Binance, KPMG, and Standard Chartered Bank have also been adopted.
Annex – List of respondents
The proposals adopted from CertiK include:
1.13: We acknowledge the importance of the storage of private keys and the provision of wallet services in terms of risk management and user protection under various use cases. The Government and the financial regulators are exploring the regulatory approach for these activities, and will engage the public and relevant stakeholders in the process.
3.2.42: Incident management should include, but not be limited to, the establishment of incident management policies, monitoring mechanisms and incident response plans for FRS issuers’ timely recovery actions and reporting to the MA.
On December 27, 2023, the FSTB and HKMA jointly issued a consultation paper on the proposed regulatory regime for stablecoin issuers in Hong Kong. The consultation period ended on February 29, 2024, with a total of 108 submissions received. The majority of respondents supported the notion that a robust regulatory environment is a prerequisite for the sustainable development of Hong Kong's stablecoin ecosystem.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “In addition to the existing regulatory regime for VA trading platforms, the establishment of a licensing regime for FRS issuers will further strengthen the VA regulatory framework in Hong Kong in line with international standards and effectively mitigate possible financial stability risks associated with FRS issuance activities.”
The Chief Executive of the HKMA, Mr Eddie Yue, said, “We are grateful for the respondents’ valuable comments and are encouraged by the general support for the proposed regulatory regime. We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”
“CertiK is honored to have participated in the formulation of Hong Kong's stablecoin regulatory framework and to have provided input for its improvement. CertiK looks forward to continuing to cooperate with the HKMA and other industry partners to jointly advance the security and innovation of stablecoins and related virtual assets,” said Professor Gu Ronghui, a member of the Hong Kong Web3.0 Development Task Force and co-founder of CertiK. “We believe that the implementation of these regulatory measures will not only enhance Hong Kong's competitiveness as an international financial center but also promote the sustainable development of the stablecoin ecosystem, providing users with safer and more reliable digital asset services.”
The FSTB and the HKMA will take into account the views and suggestions from respondents in finalizing the legislative proposal for implementing the regulatory regime, with a view to introducing a bill into the Legislative Council as soon as possible.
“Consultation Conclusions - Legislative Proposal to Implement the Regulatory Regime for Stablecoin Issuers in Hong Kong” document:
https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2024/20240717e3a1.pdf
Contact:
Elisa Yiting Xu
yiting.xu@certik.com