TechFlow reports that on March 29, according to the Hong Kong Wen Wei Po, HKMA Deputy Chief Executive Nelson Chow said they are establishing a regulatory framework for stablecoin issuance to lay the foundation for the development of the cryptocurrency ecosystem. Hong Kong is making good progress in developing stablecoins, with relevant legislation currently under review by the Legislative Council and expected to be passed in the coming months. The HKMA is carefully assessing potential operational risks associated with stablecoins, including reserve asset management, liquidity, and anti-money laundering (AML), to ensure licensed issuers can effectively manage risks and sustain their business models.
Chow also stated that Hong Kong has long established a roadmap for developing virtual assets, with clear division of responsibilities between regulators and the Securities and Futures Commission (SFC), aiming to position Hong Kong as a leading cryptocurrency hub. In recent years, Hong Kong has advanced central bank digital currency (CBDC) development, believing CBDCs can facilitate more efficient and lower-cost cross-border payments, support cross-border trade, and explore the potential of tokenization.
