Hong Kong Government Pushes for Licensing Bills on Stablecoin and OTC Crypto Trading

Hong Kong Executive Pushes for Licensing Bills on Stablecoin and OTC Crypto Trading

The Hong Kong authorities objectives to submit licensing bills for stablecoin and over-the-counter (OTC) crypto buying and selling frameworks in repeat to adjust the crypto replace and enhance investor protection.

Christopher Hui, the Secretary for Monetary Companies and products and the Treasury, made the announcement per a lawmaker at the Legislative Council.

The Monetary Companies and products and the Treasury Bureau (FSTB) launched a public consultation earlier this month on legislative proposals for introducing a licensing regime specifically designed for services of OTC crypto buying and selling services and products.

The consultation length is space to realize on April 12, permitting stakeholders and the overall public to produce their enter.

Moreover to the OTC buying and selling framework, the FSTB and the Hong Kong Monetary Authority (HKMA) collectively initiated a consultation in December on regulating stablecoin issuers.

The proposal means that all stablecoin issuers referencing fiat currencies could perhaps well serene attach a license from the HKMA.

The consultation length for this proposal ended on February 29.

Hong Kong to Put up Bills Per Outcomes from Consultations

Per the outcomes of the consultations and the growth of preparatory work, the authorities intends to submit bills linked to these licensing regimes to the Legislative Council promptly, per Hui.

“Topic to the consultation outcomes and growth of the preparatory work, the Executive will submit bills on the above licensing regimes to the Legislative Council as quickly as practicable.”

Highlighting the want for legislation, Hui mentioned that the Securities and Futures Commission (SFC) has been an increasing number of cracking down on crypto-linked legal cases.

In 2021, there be pleased been 1,397 cases, which rose to 2,336 cases in 2022, and further increased to 3,415 cases in 2023.

The total quantity of money fascinating by these cases reached practically HK$4.4 billion ($562.6 million) in 2023, when put next with HK$1.7 billion in 2022 and HK$824 million in 2021.

Hui furthermore mentioned that regulatory authorities are taking a strict solution to weed out substandard actors from the replace.

He highlighted the instance of the JPEX crypto alternate, which changed into shut down by authorities last year.

As of February 20, 70 people linked to the platform be pleased been arrested, despite the undeniable truth that no prosecutions be pleased been initiated yet.

Legit Asks for Approval of Yuan-Linked Stablecoins

Earlier this month, the Hong Kong Current Chamber of Commerce (HKGCC) requested policymakers to take into story permitting the issuance of Chinese yuan-linked stablecoins.

The influential replace group emphasised the importance of maintaining and attracting ability and firms in Hong Kong and proposed the exploration of a “Digital Asset Connect Blueprint.”

The HKGCC instructed that the authorities could perhaps well serene allow the issuance of yuan-linked stablecoins or those backed by a basket of various fiat currencies, at the side of the yuan, Hong Kong buck, or U.S. buck.

In the period in-between, experts deem Hong Kong will greenlight space crypto alternate-traded funds (ETFs) by the middle of this year.

Gary Tiu, the govt. director and head of regulatory affairs at OSL, a Hong Kong-licensed cryptocurrency alternate, has acknowledged OSL is in shut communication with multiple fund firms, adding that 5 to 10 firms are brooding about introducing a space crypto ETF.

Source : cryptonews.com