The Hong Kong Monetary Authority (HKMA) released today (January 31) a consultation summary on crypto assets and stablecoins, consolidating feedback received on the discussion paper and outlining the HKMA's responses. The HKMA proposes regulating certain activities related to stablecoins, detailing the expected regulatory scope and key requirements in the summary document.
Key Takeaways from the Consultation
- 58 Responses Received: Feedback was submitted by industry players, public institutions, commercial and professional groups, as well as individuals.
- Risk-Based Approach Supported: Respondents endorsed a flexible, risk-focused regulatory framework for stablecoins.
- International Alignment: Broad support for considering market developments and international regulatory discussions when designing the regime.
Regulatory Vision
HKMA Chief Executive Eddie Yue stated:
"A balanced regulatory environment will help mitigate financial stability risks posed by stablecoins while fostering orderly industry growth. We appreciate respondents’ valuable input on the discussion paper and their support for our proposed regulatory principles. Final arrangements will incorporate feedback, market trends, and global dialogues, with ongoing stakeholder engagement. We aim to implement the regime in 2023/24."
The HKMA will announce further details on regulatory measures and next steps in due course.
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Frequently Asked Questions
What activities will be regulated under the stablecoin framework?
The HKMA plans to oversee issuance, governance, and redemption mechanisms of stablecoins to ensure financial stability.
How does HKMA’s approach compare internationally?
The framework aligns with Financial Stability Board (FSB) guidelines while adapting to Hong Kong’s market dynamics.
When will the regulations take effect?
Target implementation is set for 2023/24, pending further stakeholder consultations.
👉 Learn about stablecoin compliance
The full summary is available on the HKMA website (English only).