According to CoinDesk, Hong Kong's government is planning to introduce legislation for stablecoin issuers and virtual asset over-the-counter (OTC) services. The Financial Services and the Treasury Bureau (FSTB) has initiated two consultations related to the sector in recent months. An official confirmed on Wednesday that the government will proceed with implementing the legislation for stablecoins and virtual asset OTC services.
In December, the FSTB and the Hong Kong Monetary Authority (HKMA) introduced a public consultation on the regulation of stablecoin issuers. Stablecoins are crypto tokens whose value is tied to another asset, such as gold or the U.S. dollar. Earlier this month, the FSTB also initiated a consultation on proposals for a licensing regime for providers of OTC trading services. Secretary for Financial Services and the Treasury Christopher Hui stated that the government will submit bills on the licensing regimes to the Legislative Council as soon as practicable, depending on the consultation outcomes and progress of the preparatory work.
Hong Kong, a special administrative region of China, is in line with many jurisdictions worldwide that are looking to refine their approach to the industry. The city recently issued guidance for firms offering crypto custodial services and is exploring the possibility of approving a spot bitcoin exchange-traded fund (ETF), according to recent reports.