The Hong Kong Monetary Authority has finished the consultation on stablecoin licensing—the two-month consultation concluded in February, with 108 contributions from stakeholders.
Most respondents agreed on a regulatory framework for fiat-referenced stablecoin (FRS) issuers. They pointed to the rise of digital assets and associated monetary hazards. Transparent safeguards are critical.
The FSTB Secretary, Christopher Hui, stated that the move will line with global standards and strengthen financial stability. HKMA CEO Eddie Yue underlined that a well-regulated framework benefits the stablecoin ecosystem.
The authorities will complete the legislative plan based on the comments. They want to propose the bill to the Legislative Council soon.
In March, Hong Kong established a regulatory sandbox for stablecoin issuers. Applications are being reviewed, and participants will be informed soon. In the meantime, Hong Kong's proactiveness shows its desire to be a hub for crypto innovation. Its concentration on regulation makes it appealing to industry actors.
