Learn more about our comprehensive legal services.
Advising our clients on different opportunities and challenges of the industry.
Developing a unique culture, which blends traditional client care with modern technology and working practices since 1851.
Stay up to date on the latest news and legal insights.
News & Insights
Authored by: Simon Deane and Jennifer Lok
On 12 January 2022, the Hong Kong Monetary Authority (HKMA) released a discussion paper on crypto-assets and stablecoins (the Discussion Paper).
The Discussion Paper considers the existing regulatory framework on crypto-assets and stablecoins in Hong Kong, taking into account, among other things, the market and regulatory landscape in Hong Kong and other major jurisdictions, the characteristics of stablecoins and the potential risks that may arise in relation to the use of stablecoins, and outlines the HKMA’s views and priorities on the regulatory approach for crypto-assets.
The HKMA’s proposal is to focus initially on payment-related stablecoins, in particular asset-linked stablecoins. Under the new regime, certain stablecoin-related activities will be regarded as regulated activities and need to be licensed by the HKMA.
The HKMA is inviting feedback on the scope of the regulatory regime applicable to stablecoins from members of the public and the industry by 31 March 2022. The aim is to introduce the new stablecoin regulatory regime by 2023-2024. The Discussion Paper can be found here.
Subscribe to Publications
Sign up for our regular updates covering the latest legal developments, regulations and case law.
Media Contact
For media enquiries please contact us at media.relations@deacons.com.
Tel: +852 2825 9211