Hong Kong to Roll Out Stablecoin Regulations This Year

At the ongoing Hong Kong FinTech Week, several government officials have weighed in on the government’s outlook on crypto assets. The comments show that the Hong Kong government will issue stablecoin regulations and other crypto-focused guidelines to establish its presence as a digital asset hub.

Hong Kong to Regulate Stablecoins

Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, stated in a keynote speech at the week-long event that a stablecoin policy is one of the expected moves from the government before this year’s end.

Jeremy Allaire, the co-founder and CEO of stablecoin issuer Circle, also spoke at the Hong Kong FinTech Week event. He expressed enthusiasm over Hui’s speech about an incoming stablecoin regulatory policy.

Ahead of tomorrow’s Circle Forum, the firm’s co-founder tweeted that several announcements will be made to enable Circle to harness the latest regulatory shift. If the stablecoin issuer successfully enters the Hong Kong financial market, the firm will have its digital footprint across multiple countries. It has a presence in the European Union, the United States, and other geographical locations.

Hong Kong to Embrace Crypto

Aside from the stablecoin regulation, the Hong Kong government is also working towards implementing tax incentives for family offices and private funds investing in crypto for wealthy customers. These entities must meet specific requirements to benefit from the provision.

The government has also reiterated its commitment to issuing more licenses to crypto exchanges before this year ends. Earlier this month, the region’s Securities and Futures Commission (SFC) revealed that 11 virtual asset trading firms have applied for operational licenses. The financial agency has endorsed three licenses for virtual asset trading activities.

More Hong Kong companies have begun showing interest in the crypto industry. Earlier today, the Hong Kong Exchanges and Clearing Limite (HKEX), one of the region’s leading stock exchanges, disclosed its plan to launch the virtual asset index series on November 15th. This allows investors to track the prices of popular cryptocurrencies like BTC, ETH, and others.