Hong Kong is planning to issue guidance on stablecoins by mid of the next year.
Hong Kong is a special administrative region of China. As we know, crypto is fully banned in the jurisdiction of mainland China, but the contrary of it is fully legal in Hong Kong. In June of this year, Hong Kong legalized crypto trading for retail investors under a fully regulated environment, which was banned in 2021.
On 19 Sep 2023, Hong Kong lawmaker Chiu Duncan spoke about the stablecoin consultation development and said that a second round of consultation on stablecoin is currently going on.
Chiu believes that guidance on the stablecoin consultation will be issued by the middle of next year, just like Hong Kong legalized retail crypto trading in the middle of this year.
If stablecoin issuance guidance becomes successful then it will allow crypto companies or other regulated financial institutions to issue Hong Kong Dollar pegged stablecoins and other assets in the form of tokens i.e. tokenization of the traditional assets. All these together will help Hong Kong to become a hub of digital innovations.
Earlier this last week the Hong Kong central bank issued a warning against all those companies which claimed to be a “crypto Bank” or trading bank on behalf of the crypto regime. According to the central bank, all these companies are violating Hong Kong’s financial laws & also suggested citizens remain away from such platforms, as these platforms are not secured with any such bank law system.
Notably, Hong Kong has been an attraction for the Mainland population. People are not only visiting Hong Kong for crypto & blockchain-related jobs but also for offline crypto trading, later is illegal.
If Hong Kong will push crypto & blockchain-related adoption works continuously then there are huge possibilities that in the coming years Hong Kong will be the top in terms of digital finance in the whole world.