The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly published the Consultation Paper on the proposed implementation of regulatory regime for the fiat-referenced stablecoin (FRS) issuers with the following major features:
a. implementing a licensing regime for all FRS issuers to meet certain conditions;
b. requiring that FRS can only be offered by specified licensed entities, and only the licensed FRS can be offered to retail investors;
c. prohibiting the advertising of (i) FRS issuance by unlicensed entities; or (ii) non-specified licensed entities' offering of FRS;
d. granting the powers for the authorities to adjust the parameters of in-scope stablecoins and activities, where necessary; and
e. providing a transitional arrangement to facilitate the implementation of the regulatory regime.
Please read the Consultation Paper HERE and provide any comments on or before Friday 26 January 2024 with membership numbers and contact details to research@hkcgi.org.hk. Depending on views received by the Institute, if any, the Institute may consider making a submission.