Hong Kong Proposes Regulatory Framework for Stablecoins

Hong Kong has introduced a regulatory proposal for the stablecoin industry, outlining a legal framework that mandates stablecoin issuers to acquire a license within the city. The proposal, collaboratively released by the Hong Kong Monetary Authority (HKMA) and the Bureau of Financial Services and Treasury, details key requirements for stablecoin issuers operating in Hong Kong. To qualify for a license, stablecoin issuers must be locally incorporated, possess a governance presence, and establish an effective stabilization mechanism involving a pool of high-quality, highly liquid reserve assets. The proposed framework aims to regulate stablecoins referencing the value of one or more fiat currencies in Hong Kong. (Source: Bitcoinsistemi.com)