Chen Haolian: In the future, the Hong Kong government will continue to improve the legal currency stablecoin issuers and virtual assets over the counter service providers to establish a licensing system

Speaking at today's Legislative Council meeting, the Deputy Secretary for Financial Services and the Treasury, Mr. Albert Chan, said that the Hong Kong Government, together with the regulatory authorities, will work to continuously improve the regulatory framework, including the establishment of a licensing system for fiat currency stablecoin issuers and virtual asset over the counter service providers. We have completed public consultation on the proposal and will introduce the relevant bill to the Legislative Council as soon as possible. The HKMA has also launched a "sandbox" for stablecoin issuers to test their operational plans in a risk-controlled environment, and to conduct two-way communication on the proposed regulatory requirements to ensure that the design of the system meets regulatory objectives.
In addition, the HKMA will jointly explore with the Digital Currency Research Institute of the People's Bank of China to enable Hong Kong residents to upgrade their digital wallets through real-name authentication, and promote more payment connectivity to provide users (including individuals and merchants) with a more convenient payment experience. The two central banks will also jointly explore application scenarios for enterprises to facilitate cross-border trade settlement.