Regulation
Hong Kong moves towards stablecoin regulation
Hong Kong has drafted detailed regulations on stablecoins after a public consultation. Authorities aim to introduce a draft bill later this year, with a focus on strong regulations and protections for users.
Let’s see all the details below.
Hong Kong Regulation: The Regulatory Path to Stablecoin Legislation
As expected, Hong Kong is moving towards a complete regulation stable fiat coins after the conclusion of the public consultation phase.
The Financial Services and Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) announced the results of the investigation. consultations and outlined the next steps in the legislative process.
The consultation paper, published last year and with 108 stakeholder contributions, informed the Law proposition imminent.
According to regulators, the regulatory regime will focus on stablecoins that operate on decentralized ledgers, limiting unilateral control over their functionality.
One of the crucial points is the obligation for stablecoin issuers to obtain a Licence, with the possibility of maintaining reserves in authorized banks in Hong Kong or other jurisdictions.
Foreign entities will need to establish a local presence and have key personnel in the territory in order to apply for a license.
The HKMA also expressed its intention to reduce the frequency of public disclosures compared to the initial proposal, instead proposing a model of monthly attestation by an independent auditor.
They will continue to discuss this and other related issues as part of the process of finalizing the legislation.
These developments reflect Hong Kong’s efforts to remain globally competitive as a hub for cryptocurrency.
With the recent entry into force of the European regime Mica and ongoing legislative developments in the United States, Hong Kong is strategically positioned in the emerging financial technology sector.
To further promote innovation in the sector, the HKMA has established a regulatory sandbox for stablecoin issuers, providing immunity to test new operations.
Further details on the procedures for accessing this sandbox will be announced shortly.
In conclusion, Hong Kong is developing a comprehensive and modern regulatory framework for stablecoins, aiming to balancing innovation with the security and protection of investors and end users.
Three fraudsters arrested in Hong Kong for Tether theft and possession of counterfeit notes
Hong Kong police have arrested three individuals on suspicion of theft Attached (USDT) worth HK$3.11 million (US$400,000) and seizing nearly 11,000 counterfeit notes from their offices.
The suspects, operating a scam, convinced a 44-year-old entrepreneur to convert his USDT. During the operation, they showed the unfortunate man bundles of cash, assuring him that he would receive this money in exchange for the cryptocurrency.
The man, confident, transferred the USDT in the scammers’ crypto wallet.
However, according to a source close to the case who spoke with the The South China Morning Post newspaper, Most of the notes were counterfeit, with only two genuine notes at the top and bottom of each bundle.
The source added that after the transfer, the scammer asked to examine the tickets, but the employees refused, saying they had not received authorization from the store manager.
The man reported the incident to police last Friday. On Monday, authorities raided the suspects’ offices and seized 10,978 counterfeit HK$1,000 notes.
These notes, although similar to the authentic ones, bore the inscription “coupon di pratica” in Chinese and lacked security watermarks.
Police arrested a 42-year-old woman, a 24-year-old man and a 40-year-old man on charges including obtaining property by deception and possession of counterfeit banknotes.
The three men were also questioned in connection with similar cases of cryptocurrency conversion scams.
If convicted, they face up to 10 years in prison for fraud and up to 14 years for possession and use of counterfeit bills.