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CZ on the highlights of Hong Kong Stablecoin regulatory policy

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A risk-based approach to determining which stablecoins are in range is designed to reduce risk to the monetary and financial system - hence starting with fiat backed stablecoins.

CZ on the Highlights of Hong Kong Stablecoin Regulatory Policy

Original article by CZ

MarsBit

1. Further positive news from the regulatory authorities (Hong Kong Monetary Authority, i.e. Hong Kong Monetary Authority), we are very proud to see the #Binance recommendations reflected in the StableCoin consultation results they have now published. Highlights of the approach they decided to take with stablecoin:

2. A risk-based approach to determining which stablecoins are within range is designed to reduce risk to the monetary and financial system -- hence starting with fiat backed stablecoins.

3. Clearer scope of regulatory activities, particularly governance, issuance, stabilisation arrangements and wallets -- including access and hosting management.

4. Consider alternatives to local firms to implement regulatory and supervisory requirements, such as mitigation measures, subject to further assessment. Consideration of an alternative approach to local incorporation for enforcing regulatory and supervisory requirements, such as mitigation measures, subject to further evaluation.

5. We fully support 1:1 support and redemption at par value. Busds are pegged to the US dollar and are available for redemption at a 1:1 ratio. It was distributed in partnership with Paxos and is approved by NYDFS.

6. We have seen many benefits and uses of Stablecoins, such as cross-border payments, inflation hedging, and even aid payments. Regulation will bring much-needed certainty to issuers, users and service providers and accelerate adoption.

7. Stablecoins are now under intense regulatory scrutiny. We look forward to the views of the Financial Stability Board and the Monetary Authority of Singapore. @FinStbBoard and @MAS_sg. Read our response to the FSB consultation here: https://fsb.org/wp-content/uploads/Binance-public.pdf