TechFlow, September 10 — According to the Hong Kong government press release, Financial Secretary Paul Chan's Financial Services and the Treasury Bureau head, Christopher Hui, gave a written response during the Legislative Council meeting regarding regulatory matters under the "Stablecoin Ordinance."
Hui stated that virtual asset over-the-counter trading platforms are currently not classified as "authorized providers" or money changers under the "Stablecoin Ordinance," and therefore cannot offer designated stablecoins to retail or professional investors. To address potential attempts by unauthorized providers to circumvent regulation, the Hong Kong Monetary Authority (HKMA) will enhance outreach efforts to ensure industry compliance and monitor stablecoin trading activities in the market.
Hui emphasized that the HKMA has not yet issued licenses to any stablecoin issuers, and members of the public purchasing stablecoins through unregulated channels must bear the risks themselves.
Regarding the licensing regime for digital asset trading and custodial service providers, Hui revealed that the Financial Services and the Treasury Bureau, together with the Securities and Futures Commission, recently completed a public consultation from June 27 to August 29. They are now reviewing feedback to finalize the licensing framework details and will announce the legislative timetable in due course.
