<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/hong-kong-government-takes-steps-to-regulate-stablecoins/" data-wpel-link="internal">Hong Kong Government Takes Steps to Regulate Stablecoins</a><br></p>
<p style="text-align: justify">The Hong Kong government is taking significant steps towards regulating <strong>stablecoins</strong> with a public consultation period that will last from December 27, 2023, to February 29, 2024. The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) have jointly released a public consultation paper outlining legislative proposals for the supervision of stablecoin issuers.</p> 
<h2 style="text-align: justify" id="navigating-the-evolving-landscape-of-stablecoins">Navigating the Evolving Landscape of Stablecoins</h2> 
<p style="text-align: justify">The Hong Kong government, recognizing the vital role of stablecoins in the <a href="https://en.coin-turk.com/revolutionizing-web3-identity-verification-with-dynamic-labs/" data-wpel-link="internal">Web3</a> and crypto asset (VA) ecosystem and the increasing integration of traditional <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude">financial</a> systems with crypto asset markets, deemed it necessary to introduce a regulatory framework for fiat-referenced stablecoin (FRS) issuers.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="wp-image-294535 size-full aligncenter" src="https://coin-turk.com/wp-content/uploads/2023/12/stablecoin-cointurk.webp" alt="" width="1280" height="720"></p> 
<p style="text-align: justify">The proposed regime aims to manage potential monetary and financial stability risks while creating transparent and appropriate guidelines to cope with the increasing prevalence of <strong>crypto</strong> assets.</p> 
<h2 style="text-align: justify" id="key-features-of-the-legislative-proposal">Key Features of the Legislative Proposal</h2> 
<p style="text-align: justify">The legislative proposal includes feedback from the market, responses to the “Discussion Paper on <a href="https://en.coin-turk.com/experts-current-cryptocurrency-predictions-bitcoin-27600-dollars/" data-wpel-link="internal">Crypto</a> Assets and Stablecoins” published by the HKMA last year, ongoing stakeholder engagements, local market conditions, and international standards. The key features are as follows:</p> 
<ul style="text-align: justify"> 
 <li>Licensing Regime: The introduction of a new law to implement a licensing regime and making it mandatory for all stablecoin issuers that meet certain conditions to obtain a license from the Monetary Authority (MA).</li> 
 <li>Individual Investor Restrictions: Making it mandatory that stablecoins can only be offered by certain licensed entities and only MA-licensed stablecoins can be presented to individual investors.</li> 
 <li>Advertising Bans: Prohibiting the advertising of stablecoin issuance by unlicensed entities or unspecified licensed entities offering stablecoins.</li> 
 <li>Adjustable Parameters: Granting authorities the power to adjust stablecoin parameters and activities in accordance with the rapidly evolving crypto market.</li> 
 <li>Transitional Arrangements: Providing a transitional arrangement to facilitate the implementation of the regulatory regime.</li> 
</ul> 
<h2 style="text-align: justify" id="legal-regulation-for-enhanced-oversight">Legal Regulation for Enhanced Oversight</h2> 
<p style="text-align: justify">In addition to the legislative proposals, the HKMA will proceed with a legal regulation. This initiative aims to convey audit expectations, provide guidance on compliance, and collect feedback from organizations genuinely interested in issuing FRS in Hong Kong. Thus, it targets to ensure that the proposed regulatory regime is practical and aligned with market needs.</p> 
<p style="text-align: justify">The Financial Secretary Christopher Hui emphasized the importance of these regulatory measures in promoting the development of the Web3 ecosystem in Hong Kong. HKMA Chief Executive Eddie Yue also reiterated this sentiment, highlighting the importance of a regulatory stance while supporting financial innovation.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/hong-kong-government-takes-steps-to-regulate-stablecoins/" data-wpel-link="internal">Hong Kong Government Takes Steps to Regulate Stablecoins</a></h5>

Hong Kong Government Takes Steps to Regulate Stablecoins

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