PANews reported on March 29 that according to the Hong Kong Wen Wei Po, Chen Weimin, deputy director of the Hong Kong Monetary Authority, said that a regulatory framework is being established for the issuance of stablecoins to lay the foundation for the development of the cryptocurrency ecosystem. Hong Kong has made good progress in the development of stablecoins. The relevant bill is being reviewed by the Legislative Council and is expected to be passed in the next few months. The Hong Kong Monetary Authority is carefully examining the potential risks of stablecoins in operations, including the management of reserve assets, liquidity and anti-money laundering (AML), to ensure that licensed issuers can effectively manage risks and the business model is sustainable.
Chen Weimin also said that Hong Kong has long formulated a roadmap for the development of virtual assets. The authorities and the Hong Kong Securities and Futures Commission have a clear division of labor. The goal is to develop Hong Kong into a leading cryptocurrency center. In recent years, Hong Kong has developed a central bank digital currency (CBDC), believing that CBDC can promote more efficient and low-cost cross-border payments, help promote cross-border trade, and explore the potential of tokenization.
