The Hong Kong Monetary Authority (HKMA), Hong Kong’s central bank. It has launched a survey to measure public opinion on crypto-asset and stablecoin legislation. By 2023-24, the state-backed body hopes to have a regulatory framework in place.
The HKMA’s “Discussion Paper on Crypto-assets and Stablecoins”
highlights the stablecoin market’s explosive growth in terms of market capitalization since 2020. Then, as well as concurrent regulatory recommendations from international regulators. Of course, such as the Financial Action Task Force (FATF) of the United States, the Financial Stability Board (FSB). Then, and the Basel Committee on Banking Supervision (BCBS).
From a systemic standpoint, the current size and trading activity of crypto-assets, according to the HKMA, may not pose an immediate threat to the global financial system’s stability. The discussion paper, on the other hand,
“The growing exposure of institutional investors to such assets as an alternative to or to complement traditional asset classes for trading, lending and borrowing […] indicate growing interconnectedness with the mainstream financial system.”
According to the aforesaid number, the worldwide market capitalization was over $150 billion in December 2021, “representing around 5% of the whole crypto-asset market,” according to the HKMA’s paper.
No action, opt-in regime, risk-based regime, catch-all regime, and blanket ban:
the regulator has also shared a list of eight questions to seek policy-related recommendations, citing five possible regulatory outcomes:
no action, opt-in regime, risk-based regime, catch-all regime, and blanket ban:
the regulator has also shared a list of eight questions to seek policy-related recommendations.
The HKMA expects stakeholders to respond by March 31, 2022, and plans to “implement the new regime no later than 2023/24.”