The Hong Kong Monetary Authority issues guidelines on distributed ledger technology to banks

The Hong Kong Monetary Authority has issued guidelines to local banks on the use of distributed ledger technology (DLT) and support the development of the virtual asset ecosystem in Hong Kong to support banks in using DLT under controlled risks. It is hoped that by clarifying the main regulatory considerations of the Hong Kong Monetary Authority, it will further promote the wider application of DLT in the industry, including establishing appropriate governance, ensuring appropriate design of DLT applications, continuous maintenance and monitoring of DLT projects. In order to keep pace with the diverse development of technology and markets, the HKMA will continue to maintain close communication with the industry to support the orderly development of the virtual asset ecosystem in Hong Kong under controlled risks.