Today, the Hong Kong Legislative Council has adopted the Stable bill for the stablescoins of Fiat. The legislation should come into force later this year and is considered a key pillar in Hong Kong’s desire to maintain and improve its position as an international financial center. Last year, Hong Kong Monetary Authority (HKMA) launched a Stablecoin sandbox which currently hosts three initiatives.
“The order has established a regulatory regime based on risks, pragmatic and flexible,” said Eddie Yue, CEO of HKMA. “We believe that a robust and rack-used regulatory environment would provide favorable conditions to support healthy, responsible and sustainable development of Hong Kong Stablecoin and the wider digital asset ecosystem.”
One of the sandbox groups, the animoca brands of the Hong Kong company, Hong Kong, Hong Kong (HKT) and Web3 have created a joint venture to launch a Stablecoin. Another member of the Sandbox is Jingdong Coinlink technology a subsidiary of the Chinese electronic commerce giant JD.com. The third member is RD Innovressch A startup whose donors include Zhong a group of digital assets (affiliated to the ZA Bank digital bank) and a regulated hashkey in exchange for crypto. Today, ZA Bank has welcomed the adoption of the bill and is positioned as providing reserve banking services. Standard Charterd already provides services similar to the stablecoin paxos and Straitsx transmitters in Singapore.
Stablecoin reign delegated
While the Hong Kong bill has reached 250 pages, it delegates significant regulations to the monetary authority of Hong Kong. Consequently, some of the legal requirements are relatively loose, such as the obligation to reserve assets which support a stablecoin to be in the same currency and “high quality and high liquidity with risks of minimum investment”. This contrasts with regulations and proposals in other regions which are more normative concerning reserves. This will probably be added when the HKMA formulates the rules.
Emitters must have a minimum capital of $ 25 million HK and significant sanctions will be imposed on an unregulated entity which markets a stablecoin. A transmitter must be regulated if it emits a stable co -HKD, if it is based in Hong Kong or if it markets Hong Kong consumers.
Meanwhile, legislation on the United States is growing with the Act on Engineering adopting a procedural vote on Monday.
