Hong Kong’s plans to introduce stablecoin regulations have moved forward, while the US has also been discussing its own stablecoin bills.
Hong Kong will likely add another feather to its cap with several crypto-friendly measures, with the latest being stablecoin regulations for the region. While announcing the same, the Hong Kong Monetary Authority has also concluded a public consultation on the stablecoin regulations and could implement the rules by the end of next year.
Since the public consultations are complete, the Hong Kong Monetary Authority will concentrate on governance, stabilization, and issuance of stablecoins. Earlier in 2022, when it had first started discussions on the stablecoin regulations, the Hong Kong Monetary Authority had shared a few possible results of the regulations, which included either no action, a blanket ban, or cases of an opt-in regime, a catch-all regime, or a risk-based regime.
The Hong Kong Monetary Authority had also recommended all stablecoin issuers in early 2023 to back all stablecoins to underlying reserve assets, banning algorithmic stablecoins.
The recent public consultation is one of many initiatives the Hong Kong Monetary Authority took to make Hong Kong a crypto hub. It has also introduced a licensing regime for crypto firms while allowing retail traders to trade crypto.
In the United States, stablecoin regulations have also steadily progressed, with a few stablecoin bills in the offing. A US House Committee is behind the developments and has been actively engaged in the same.