Hong Kong Monetary Authority Releases Discussion Paper on Crypto Assets, Stablecoins

On January 12, the Hong Kong Monetary Authority released a discussion paper on encrypted assets and stablecoins. The document lays out the MAS’s vision for a regulatory model for cryptoassets, particularly stablecoins used for payments. The model takes into account international recommendations, market and regulatory conditions in local and other key regions, and the characteristics of stablecoins used for payment purposes. The HKMA also focuses on some issues in the form of questions and answers in the document to facilitate stakeholders to share their views. Mr. Yu Weiwen, President of the HKMA, said: "The rapid development of encrypted assets, especially stablecoins, is a topic of concern to international regulators as they may pose risks to monetary and financial stability. The HKMA has been closely monitoring relevant developments and hopes to proactively share our thoughts with the industry and the public. We welcome views from stakeholders and will formulate a risk-based, pragmatic and flexible regulatory regime in this area. In addition, the Hong Kong Monetary Authority will establish a regulatory framework for crypto assets by July.