- Hong Kong has advanced plans for a stablecoin regime.
- Two regulators have adopted regulation proposals from CertiK.
- Proposals from Binance and Standard Chartered were also accepted.
The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) have accepted CertiK’s proposals to advance a stablecoin regulatory regime.
CertiK, a blockchain security firm, is listed as a respondent in Hong Kong’s consultation paper on the proposed regulatory framework. HKMA and FSTB released the “consultation conclusions” on July 17 after a two-month engagement period, which began in December last year and ended on February 29.
CertiK’s Proposals for Stablecoin Regulation
According to a press release shared with DailyCoin on July 22, the HKMA and FSTB have adopted two proposals from CertiK, including establishing comprehensive incident management policies, monitoring mechanisms, and incident response plans for fiat-referenced stablecoin (FRS) issuers.
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The other proposal acknowledges the critical role of private key storage and wallet service provision in protecting users and managing risks under multiple scenarios. According to the statement, regulators and the government are exploring an oversight approach for these activities and will engage the public and stakeholders in the process.
Hong Kong’s consultation on the stablecoin regulation framework attracted 108 submissions, with most respondents urging for a robust oversight environment as a stepping stone toward building a sustainable domestic stablecoin ecosystem.
CertiK co-founder Professor Gu Ronghui lauded the development, noting that the company was keen to engage regulators and industry partners on the next steps.
“CertiK is honored to have participated in the formulation of Hong Kong's stablecoin regulatory framework and to have provided input for its improvement. CertiK looks forward to continuing to cooperate with the HKMA and other industry partners to jointly advance the security and innovation of stablecoins and related virtual assets,” Ronghui stated.
The HKMA and FSTB also adopted proposals from other organizations, including Binance, Ant Group, Standard Chartered, and KPMG. The regulators will consider suggestions from the respondents when drafting the final legislative proposal for the stablecoin regulatory framework.
Per the statement, the final proposal will be introduced as a bill into the Legislative Council “as soon as possible.”
Stay updated on the participants of Hong Kong’s stablecoin issuer sandbox:
Hong Kong Regulator Names Stablecoin Issuer Sandbox Participants
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