Hong Kong plans to submit stablecoin, OTC cryptocurrency bills soon after consultation: official
A Hong Kong financial official said today that the government will work to submit licensing bills for stablecoins and over-the-counter cryptocurrency trading frameworks as consultations progress.
Christopher Hui, Minister of Financial Services and Finance, said: written response FSTB told members of the Legislative Council earlier this month: Public consultation has begun Describes a legislative proposal to introduce a licensing regime for over-the-counter cryptocurrency trading service providers. The consultation is scheduled to end on April 12th.
Last December, FSTB and the Hong Kong Monetary Authority, the de facto central bank, also jointly announced the deal. Consultation has begun – Until February 29 – This is about regulation of stablecoin issuers. They proposed that all stablecoin issuers referencing fiat currencies should obtain a license from the HKMA.
“Based on the results of the consultation and the progress of preparatory work, the government will submit the bill for the above licensing system to the Legislative Council as soon as possible,” Hui said.
Growing concerns about crime
Meanwhile, Hui noted in a written response that the Securities and Futures Commission has uncovered more and more cryptocurrency-related criminal cases in recent years. According to Hui, a total of 3,415 cryptocurrency-related criminal cases occurred in Hong Kong last year, up from 2,336 in 2022 and 1,397 in 2021. The amount involved in these cases increased from HK$1.7 billion in 2022 and HK$824 million in 2021 to nearly HK$4.4 billion ($562.6 million) last year.
While Hong Kong is working to become a cryptocurrency hub, regulators are taking a strict approach to phase out what they deem to be bad actors. For example, authorities JPEX cryptocurrency exchange went bankrupt Hui added that 70 people linked to the platform were arrested last year and that no prosecutions had been initiated as of February 20.
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