Hong Kong authorities have proposed the adoption and regulation of fiat-stable currencies (FRS). According to the document, the Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) said that retail investors stablecoin will allow it to buy, but will require issuers to obtain a special local HKMA licence.
To obtain a license, companies must fully back all stablecoins in circulation with reserves equal to face value, segregation and retention of reserve assets, and regular reporting. They will also need to open an office in Hong Kong with a CEO, senior management team and key personnel. However, Algorithmic Stablecoin Issuers will not be able to obtain a license.
Implementing law enforcement and enforcement regulations can appropriately manage existing and potential risks associated with the development of stablecoins in Hong Kong and be consistent with international standards.
Hui Ching, Director of the Treasury Bureau
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In May, Hong Kong’s Securities and Futures Corporation (SFC) decided to officially allow retail investors to trade cryptocurrencies. Although SFC is subject to stringent security measures, retail investors Bitcoin It will allow you to sell (BTC) and Ether (ETH). For retail trading, cryptocurrencies must not have experienced a “bad event” for 12 months. In addition, cryptocurrencies must be included in at least two indices.
In addition, in December SFC, cryptocurrency It announced that it is ready to accept applications to launch its ETFs. The joint statement emphasizes that the institutions are reviewing their existing rules and policies regarding companies and intermediaries that want to participate in cryptocurrency.