Hong Kong to License Stablecoins, Virtual Asset OTC Providers

Hong Kong to License Stablecoins, Virtual Asset OTC Providers

Hong Kong Pushes for Regulatory Framework for Stablecoins and Virtual Assets Hong Kong is taking steps to establish a comprehensive regulatory framework for stablecoins and over-the-counter (OTC) service providers for virtual assets. The move is part of the government's broader efforts to foster innovation and manage risks within the financial technology sector. "We plan to establish a licensing regime for stablecoins and OTC service providers for virtual assets in collaboration with the regulatory authorities," Financial Secretary Joseph Chan Ho-lim stated during a Legislative Council meeting. "We have already completed the public consultation and will submit the relevant bill shortly." The regulatory framework aims to provide clarity and guidance to businesses operating in the virtual asset space. It will establish licensing requirements, conduct standards, and oversight mechanisms to ensure the safety and integrity of the market. Hong Kong's move towards regulating stablecoins and virtual asset OTC providers is a significant step in shaping the future of digital finance. It demonstrates the government's recognition of the potential benefits of these technologies while also prioritizing investor protection and financial stability.