Analysis: The Hong Kong Monetary Authority may conditionally allow currency mismatches in some stablecoin cases

According to an analysis published by Mobile Payment Network, the Hong Kong Monetary Authority can conditionally allow currency mismatches in some stablecoin cases. Licensed institutions must demonstrate that they have the ability to maintain full payment at all times, including under extreme and market pressure conditions, while ensuring that any currency mismatch measures do not transfer risk to stablecoin holders. In addition, licensees need to discuss and obtain approval from the Hong Kong Monetary Authority before proposing plans such as the composition and proportion of reserve assets and risk management measures. In addition, the Hong Kong Monetary Authority does not prohibit licensees from hiring distributors outside Hong Kong. However, licensees should conduct due diligence and threat and risk assessments prior to hiring and continuously monitor throughout the process, while adhering to relevant third-party risk management measures.