The Hong Kong Monetary Authority (HKMA), Hong Kong’s central banking agency, has launched a survey to measure popular sentiment on cryptocurrency-asset as well as stablecoin rules. By 2023-24, the state-backed body wants to develop a regulatory framework.
The HKMA’s “Discussion Paper on Crypto-assets and Stablecoins” illustrates the exponential rise of the stablecoin market in contexts of market capitalization as of 2020, as well as the simultaneous regulatory suggestions made by international regulatory agencies such as the Financial Action Task Force (FATF), the Financial Stability Board (FSB), as well as the Basel Committee on Banking Supervision (BCBS).
As per the HKMA, the present size, as well as the trading activity of cryptocurrency assets, might not even constitute an imminent danger to the worldwide fiscal system’s stability.
According to the HKMA study, the worldwide market value will be approximately $150 billion in December 2021, “covering around 5% of the whole cryptocurrency-asset market.” The agency has also provided a set of eight queries in order to solicit policy-related ideas, stating five potential regulatory consequences: zero action, opt-in regime, risk-based system, catch-all regime, as well as blanket prohibition.
The HKMA expects stakeholders to provide their comments by March 31, 2022, with the goal of “introducing the new system latest by 2023/24.”
Finally, the regulator claimed that payment-related stablecoins have a greater possibility for integration into the conventional financial structure or even day-to-day commercial as well as economic operations.
As a consequence, the HKMA is thinking of broadening the purview of the Payment Systems and Stored Value Facilities Ordinance (PSSVFO), which governs the legitimacy of fiscal goods.
Sun Hung Kai, one among Hong Kong’s leading property developers, financed $90 million in Sygnum, a Swiss bank specialising to digital asset holding, supporting the regional administration’s pro-cryptocurrency ambitions.
The Series B fundraising phase raises Sygnum’s post-money worth to $800 million, implying a tenfold increase in combined sales beginning in 2021.