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Hong Kong Cointelegraph begins discussions to introduce a framework for regulating stable currencies

The Hong Kong Central Bank, the Hong Kong Monetary Authority (HKMA), issued a questionnaire to measure public opinion on cryptocurrencies and a stable currency. The state-sponsored regulator wants to establish a regulatory framework for 2023-24.

HKMA’s “Paper on Cryptocurrencies and Stablecoins” highlights the explosive growth of the stablecoin market since 2020 in terms of market capitalization and simultaneous regulatory recommendations issued by international regulators, including the United States Financial Action Group (FATF), Financial Stability Commission (FSB) and the Basel Bank Supervisory Committee (BCBS).

Market capitalization of cryptocurrencies. Source: HKMA
Market capitalization of major Stablecoins. Source: HKMA.
Possible policy options for regulating cryptocurrencies. Source: HKMA.
Regulatory attitude towards the main jurisdictions. Source: HKMA.