ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority jointly published a consultation summary on the legislative proposal for the regulation of fiat-backed stablecoin issuers in Hong Kong.It was mentioned that, considering the stablecoin sector is still in its infancy, a significant portion of respondents agreed to establish new legislation for the implementation of a regulatory regime for fiat-backed stablecoin issuers, as well as the proposal to exclude fiat-backed stablecoin issuance from the regulatory framework for relevant securities and stored value payment instruments. The Hong Kong Monetary Authority will continue to collaborate with other regulatory bodies to build a consistent regulatory framework for virtual assets in Hong Kong, avoiding regulatory arbitrage. Most respondents support the requirement that the total value of reserve assets for fiat-backed stablecoins must always be maintained at full reserve, recognizing this as a core element supporting the stability mechanism of stablecoins.

ChainCatcher news, the Hong Kong Financial Services and the Treasury Bureau stated that following the implementation of the licensing system for virtual asset service providers in June last year, the Treasury Bureau and the Monetary Authority consulted the public at the end of last year regarding the proposed regulatory regime for Hong Kong stablecoin issuers, and will soon publish a consultation summary to prepare a bill for the Legislative Council's review.The Treasury Bureau pointed out that it hopes to establish a regulatory system for fiat-backed stablecoin issuers that is appropriate and in line with international regulatory recommendations, which can provide sufficient protection for fiat-backed stablecoin users and address the potential risks that fiat-backed stablecoins pose to monetary and financial stability, allowing Hong Kong's virtual asset ecosystem to develop sustainably and responsibly.Given the important role of fiat-backed stablecoins in the Web3 and virtual asset ecosystem, and the increasingly close connection between the traditional financial system and the virtual asset market, the government needs to establish a regulatory framework for fiat-backed stablecoin issuers. The main requirements include: reserve management and stabilization mechanisms, including requiring issuers to ensure that fiat-backed stablecoins are fully backed by high-quality and highly liquid reserve assets; redemption requirements; as well as governance, knowledge, and experience regulatory requirements.At the same time, to protect fiat-backed stablecoin users, it is recommended that only the following entities can sell fiat-backed stablecoins in Hong Kong or actively promote related services to the public in Hong Kong: licensed fiat-backed stablecoin issuers; recognized institutions (i.e., banks); licensed corporations; and licensed virtual asset trading platforms. For existing stablecoin issuers, the proposed regulatory system will also have corresponding transitional arrangements.

ChainCatcher news, according to the Hong Kong Economic Journal, the Legislative Council's Financial Affairs Committee will discuss the regulation of virtual asset trading platforms. Regarding feasible regulatory forms for OTC, the Hong Kong Financial Services and the Treasury Bureau stated that the government and regulatory bodies will periodically review regulatory measures and consider introducing appropriate measures in response to market developments, including regulating related businesses outside of virtual asset trading platforms, taking into account suitable regulatory bodies, forms, and regulatory requirements.

According to ChainCatcher news, as reported by Sing Tao Daily, the Secretary for Financial Services and the Treasury, Hui Chengyu, mentioned during a media interview while accompanying Hong Kong Chief Executive John Lee on a visit to three ASEAN countries that since the publication of the "Policy Declaration on the Development of Virtual Assets in Hong Kong" last October, 90 mainland and overseas companies related to virtual assets have expressed their intention to settle in Hong Kong. He expressed confidence that the government's establishment of a comprehensive licensing system for virtual asset service providers by mid-year will help ensure the market develops in a stable and orderly manner, and protect investors' interests.

Chain Catcher NewsTo promote the development of the issuance of security tokens in Hong Kong, the Deputy Secretary for Financial Services and the Treasury, Chen Haolian, the Director of the Licensing Division of the Securities and Futures Commission (SFC), Huang Lexin, and the Financial Technology Director of the Invest Hong Kong, Liang Hanjing, jointly hosted two meetings on September 14 and 16 to meet and communicate with the industry of security token issuance. In mid-August, the government held a closed-door meeting with a group of leaders in the virtual asset industry, and last week's meetings were to follow up on subsequent matters.Chen Haolian pointed out that security token issuance has already taken place in Hong Kong. During last week's meeting, it was learned that more than a dozen potential token issuers are very interested in security token issuance. He emphasized that the government is committed to supporting the robust development of financial technology in Hong Kong, including security token issuance. Chen Haolian stated, "The Hong Kong Special Administrative Region Government supports the development of financial technology to provide a wide range of innovative financial services for society to support the development of the real economy. We support the sustainable development of security token issuance business in Hong Kong, provided that it meets relevant regulatory and compliance requirements to ensure investor protection and combat money laundering and terrorist financing."Huang Lexin expressed the SFC's support for the virtual asset industry, particularly the issuance of securities using distributed ledger technology, which helps improve efficiency, transparency, and reduce costs. In addition, Huang Lexin clarified a series of issues and dispelled many doubts and market misunderstandings, including security token issuance, the SFC's regulatory principles, and the latest regulatory directions in this field. Huang Lexin added that if any company is interested in security token issuance, they are welcome to discuss their plans with the SFC's Financial Technology team. (Source link)