Hong Kong Doubles Down on Stablecoin, OTC Rules Promise
Summary
Hong Kong's government plans to implement legislation for stablecoins and virtual asset over-the-counter (OTC) services. This follows a public consultation on the regulation of stablecoin issuers by the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) in December. The FSTB also initiated a consultation on proposals for a licensing regime for OTC trading services providers. The government will submit bills on these licensing regimes to the Legislative Council based on the consultation outcomes and progress of preparatory work. Hong Kong has also issued guidance for firms offering crypto custodial services and is considering approving a spot bitcoin exchange-traded fund (ETF).
