Hong Kong’s national bank is welcoming worldwide stablecoin administrators to react to its proposed rules.
Hong Kong’s national bank, the Hong Kong Monetary Authority (HKMA), needs to regulate stablecoin issuance and stores the executives.
HKMA distributed a conversation paper on Jan. 12 in regards to digital currencies and stablecoins, in which it gave its perspectives on the way that the business ought to be managed in Hong Kong.
In the 34-page long discussion report, the HKMA really focused on “payment-related stablecoins,” bringing up that the market capitalization of all stablecoins hit $150 billion in December, representing 5% of the whole crypto market. The controller added that all current stablecoins are “mostly asset-linked and predominantly pegged” to the United States dollar, including stablecoins like Tether (USDT) and USD Coin (USDC).
“The rapid development of crypto-assets, particularly stablecoins, is a topic of keen attention in the international regulatory community as it presents possible risks regarding monetary and financial stability,” HKMA said.
To successfully deal with related dangers, HKMA spread out eight significant arrangement headings, proposing to turn into a solitary controller to administer substances engaged with both directing and running activities like giving stablecoins and dealing with their stores. The authority additionally needs to control stablecoin exchanges’ approval processes, private key stockpiling the executives and executing exchanges.
“We encourage current or prospective players in the stablecoins ecosystem to respond to this paper and submit relevant views to us, so that we could take the feedback into account when formulating the regulatory framework,” HKMA composed. The controller hopes to finish its following stages as quickly as time permits and present new guidelines by 2023 or 2024.
HKMA isn’t the main monetary controller worried about stablecoin dangers and arranging steps to manage the developing business. In November 2021, the U.S. President’s Working Group on Financial Markets gave a report on conceivable “stablecoin runs” and “payment system risks.” The U.S. Depository in this manner alluded to new stablecoin-centered laws in December.