• 28 May, 2024
News

Hong Kong Takes Virtual Asset Value Chain by Storm, Prepares for Stablecoin Regulation

The Hong Kong government has taken proactive steps towards actively participating in the value chain of virtual assets, with an aim of establishing a comprehensive stablecoin regulatory framework by the end of next year. Chen Haolian, Deputy Director of the Financial Affairs and Treasury Bureau, announced this during a speech at an event, highlighting the government’s commitment to supporting the development of the industry while ensuring investor protection and compliance with international standards.

A well-known Chinese media outlet called Wu Blockchain recently shared a Twitter thread discussing the Hong Kong government’s focus on Web3:

Chen Haolian revealed that the Hong Kong Monetary Authority has already conducted a public consultation on the launch of stablecoins. As part of the process, the government would gradually establish a regulatory framework to provide a clear and robust framework for stablecoin operations in the future. The goal is to finalize and launch the regulatory framework before the conclusion of next year. This initiative aligns with the government’s broader focus on developing Internet 3.0 and the growth of the virtual asset industry in Hong Kong.

The Hong Kong government has been actively involved in the virtual asset space, successfully issuing tokenized green bonds earlier this year. Chen Haolian emphasized the government’s commitment to further supporting the industry’s development and welcoming industry players and talent to choose Hong Kong as their destination.

With a thriving financial technology sector, Hong Kong has witnessed a significant increase in fintech companies over the past five years. Over 800 companies offer various services, including virtual banking, virtual insurance, and virtual asset transactions. This growth has created a conducive environment for innovation and expansion within the digital asset market.

Johnny Ng, a prominent legislator in Hong Kong, has invited global virtual asset trading platforms, including Coinbase, to establish operations in the city. Ng, known for his strong support of Web 3.0 technology, sees the city’s new licensing regime for crypto retail trading, implemented on June 1, as a milestone that would pave the way for increased opportunities and growth in the digital asset market.

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