cryptonews.net
The Hong Kong Monetary Authority (HKMA) has announced the results of a discussion on the regulation of cryptocurrencies in the administrative area. Once the law is passed, companies operating in Hong Kong will be required to obtain a license to issue stablecoins.
58 companies including Binance, Ripple labs, Visa, MasterCard and Animoca took part in the discussion on the regulation of cryptocurrencies in Hong Kong. The document published by the HKMA says that the feedback received from them helped formulate new rules for regulating the issuance and governance of stablecoins.
One of the most discussed restrictions of the bill was the ban on the issuance of algorithmic stablecoins, whose binding to the rate of fiat currency is provided by algorithms, and not by funds that exist in the real world. The regulator plans to control the peg of coins to fiat currencies through checks on the security of stablecoins of companies that will receive a license. HKMA plans to introduce new rules for the operation of crypto companies during 2023-2024.
Image: DigFin