In January 2023, the Hong Kong Monetary Authority ("HKMA") and the Financial Services and the Treasury Bureau ("FSTB") jointly published the result of a discussion paper in relation to stablecoin regulations and, in light of the positive feedback received, it was concluded that there should be regulations for stablecoins-related activities. We have covered this in an earlier client alert.
As a step forward in formulating such a regulatory framework, in the last week of 2023, the HKMA and the FSTB again jointly launched a consultation paper that sets out the proposed regulatory framework and invited the public to provide comments. The consultation period will end on 29 February 2024. This client alert summarises the proposed framework as set out in the consultation paper.
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