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Hong Kong begins discussions to introduce stablecoin regulatory framework -Breaking

Hong Kong Monetary Authority (HKMA), Hong Kong’s central banks institution released a questionnaire asking for public opinions on crypto-assets regulations and stablecoins. This state-backed regulator plans to create a regulatory framework between 2023-24.

HKMA’s “Discussion Paper on Crypto-assets and Stablecoins” highlights the explosive growth of the stablecoin market in terms of market capitalization since 2020 and the concurrent regulatory recommendations put forth by international regulators including the United States’ Financial Action Task Force (FATF), the Financial Stability Board (FSB) and The Basel Committee on Banking Supervision (BCBS).

Market Capitalization for Crypto-assets. Source: HKMA
Market Capitalization Major Stablecoins Source: HKMA.
There are several policy options that could be used to regulate crypto-assets. Source: HKMA.
Major jurisdictions’ regulatory stance towards stablecoins. Source: HKMA.