The Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau (FSTB) Seek Input on New Stablecoin Legislation
The HKMA and FSTB have released a consultation paper to gather feedback on new stablecoin legislation in Hong Kong. This move follows similar efforts in Singapore, which have benefited Circle, the issuer of USDC.
Hong Kong Proposes Stablecoin Sandbox
The consultation paper is a result of engagements with stakeholders after the release of the Discussion Paper on Crypto-Assets and Stablecoin by the HKMA last year. It discusses prohibitions on unlicensed product advertisements and proposes a transitionary phase until stablecoin legislation is implemented. Additionally, the government plans to launch a sandbox to provide guidance and gather feedback from interested issuers.
Recent Developments in Stablecoin Laws
Following Singapore’s lead, Hong Kong aims to bridge the gap between crypto and fiat rails. Circle, for example, obtained a payment institution license that allows some users to hold USDC. In Europe, upcoming Markets-in-Crypto-Assets legislation has prompted French banking giant Societe Generale to issue a euro-backed stablecoin. Circle has also added its EURC stablecoin to Solana as European regulations become clearer.
Hot Take: Circle Invests in Crypto Political Action Committee for Clearer US Rules
This week, Circle, Coinbase, and a16z invested in a crypto political action committee to advocate for clearer regulations in the US. Senator Patrick McHenry, who played a key role in advancing a stablecoin bill through Congress, has announced that he will not seek re-election in 2024.
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