Hong Kong Monetary Authority (HKMA)

The HKMA is developing a robust regulatory framework for stablecoin issuers with a view to enhancing user protection and putting in place appropriate safeguards to address financial stability risks. 🛡️ Key focus of regulating stablecoin issuance activity: ·      Protecting users by requiring issuers to ensure stablecoin could be redeemed in a timely manner with full backing by high quality fiat reserve assets ·      Addressing financial stability risks due to the interconnectedness between the digital asset ecosystem and traditional finance ·      Preventing misuse of stablecoins for money laundering, terrorist financing and other illicit activities 🌍 Aligning with global standards, tailored for Hong Kong ·      Aligning with international standards set by the Financial Stability Board under the G20 ·      Tailoring the regulatory regime given Hong Kong’s local circumstances ·      The successful implementation of the comprehensive licensing regime for stablecoin issuers would serve to enhance user protection and sustainable development of Hong Kong’s digital asset ecosystem 📜 Licensing requirements for stablecoin issuers Under our proposed regime, stablecoin issuers must obtain a licence if they: ·      Issue fiat-referenced stablecoins in Hong Kong ·      Actively market their issuance activity to the Hong Kong public ·      Issue Hong Kong dollar-referenced stablecoins Licensed issuers must be incorporated in Hong Kong, maintain a local management presence, and fulfil stringent prudential and asset-backing requirements. 🏗️ Building a comprehensive licensing regime The Financial Services and the Treasury Bureau (FSTB) and the HKMA are working full steam on the draft legislation and will strive to introduce the Bill into the Legislative Council by the end of this year. Join us in shaping a healthy, responsible and sustainable digital asset ecosystem in Hong Kong! #HKMAInnovates #StablecoinRegulation #ResponsibleInnovation #DigitalAssetEcosystem #FinancialStability

As a bank supervisor, market facilitator, and responsible investor, the HKMA strives to set high standards both in and outside the office. Our commitment to being a responsible corporate citizen is demonstrated through our long-standing dedication to employee and customer care, alongside our efforts to promote financial inclusion and education. The HKMA has taken steps to give back to society through various impactful initiatives: 🌿 Sustainability-themed Family Fun Day: Celebrated HKMA's 30th anniversary with green activities like upcycling workshops, face painting, and games, fostering community and raising HK$80,000 for charities. 🎨 Love to Paint, Paint to Love Workshops: HKMA volunteers painted and distributed goody bags to the elderly with Banyan Services Association. 🍲 Meals for Seniors: HKMA volunteers packed and distributed hot meals to single elderly individuals through 33 activities in collaboration with Banyan Services Association or Gingko House. 🍽️ Rescuing Food Initiative: HKMA volunteers packed surplus food at Feeding Hong Kong's food bank for distribution to charities, supporting food security efforts. 🤝 Engaging Social Enterprises: HKMA partnered with social enterprises to host workshops, make gift packs, and run refreshment kiosks, empowering marginalised groups in Hong Kong. 🎲 $mart Money Management 321 Board Game: In 2023, HKMA introduced an award-winning financial literacy game for primary school children through outreach activities, including student trials and train-the-trainer workshops. These initiatives underscore the HKMA's dedication to social responsibility and community engagement. Stay tuned for updates on our ongoing efforts and opportunities to partner with us in creating a more sustainable and inclusive society! #HKMA #givingback #CSR #FinancialLiteracy 

New global regulations are changing the best execution requirements for both listed and over-the-counter (OTC) derivatives, prompting all registered institutions to review and enhance their policies, controls and management supervision. The HKMA has launched its fifth Regtech use case bulletin, featuring ICE’s Best Execution Services. The solution makes use of advanced analytics to derive a single reference price for an OTC derivative, which is particularly useful for bespoke and highly exotic instruments where multiple quotes are unavailable. Read the bulletin to learn more: https://lnkd.in/g2ZTUS-Y For more industry updates, visit our Regtech Knowledge Hub: https://lnkd.in/gsKAtdMe

The HKMA has recently announced the first batch of participants admitted to the stablecoin issuer sandbox. In the ever-evolving world of digital assets, we are committed to empowering stablecoin users and digital assets investors, as well as the wider general public to make informed decisions within the digital environment. While exploring this exciting frontier, we would like to remind the public to: 🔍 Assess personal risk tolerance carefully 📚 Understand the nature and risks of digital assets By taking these steps, everyone can confidently and securely navigate the digital asset landscape. 🚨 Don’t fall for scams: stay vigilant As the HKMA facilitates digital asset development through initiatives like the stablecoin issuer sandbox, we remain dedicated to ensuring a secure and transparent environment for all. However, scammers may try to exploit these initiatives. Remember, sandbox participants will not raise funds from the public or offer any investment products in the name of the sandbox. For self-protection: ·      Be cautious of unsolicited or suspicious offers ·      Never share sensitive information with unverified sources ·      Always verify claims with the HKMA 🔎 Check out the latest info about our stablecoin issuer sandbox and list of participants on the HKMA’s official website: https://lnkd.in/girqybb2 Share this post to help spread the word about staying safe and informed in the digital asset landscape. Together, we can build a safer, more secure digital asset ecosystem in Hong Kong. #HKMAeducates #InvestorProtection #DigitalAssetSafety #ScamPrevention #StablecoinIssuerSandbox

Digital finance is a means to address pain points and achieve breakthroughs in traditional financial operations by using new technologies. 💡 The Stablecoin Issuer Sandbox participants will test out their proposed use cases across various industries, driving innovations by leveraging stablecoin technologies. 🔄️ To streamline payment transactions by: • Lowering costs • Reducing transaction time • Enabling “smarter” and programmable financial services ⛓️ To optimise supply chain management by: • Automating processes • Facilitating fund flows • Enabling better risk management 💲 Exploring the possibilities stablecoins have to offer, the sandbox participants are also delving into other transformative use cases related to: • Web3 • Gaming • Virtual asset trading Stay tuned for more updates on the potential use cases of stablecoins! #HKMAInnovates #StablecoinIssuerSandbox #DigitalFinance #RealWorldSolutions #HKFinTech #Web3 #Gaming #VirtualAssets #CrossborderTransactions

Enoch Fung, CEO of the Hong Kong Academy of Finance (AoF), and Executive Director of the Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the AoF, sat down with three distinguished industry experts – Rocky Mui, partner at Clifford Chance, Edmond Lau, CFO at Cyberport Hong Kong, and Peter Brewin, Partner at PwC China, to share their insights on the frontier technologies of virtual assets, Web3, DeFi and the metaverse. Key topics include: 📌 Recent legal and regulatory developments of these frontier technologies 📌Approaches to enable these technologies in the Hong Kong’s financial industry 📌Lessons learnt from successful international experiences Read report on DeFi: https://lnkd.in/dzMxdExZ Read report on the Metaverse: https://lnkd.in/dtGfcb3M #HKMA #HKIMR #AoF #Metaverse #Web3 #DigitalEcosystem #VirtualAssets #DeFi

📢 After careful consideration, the HKMA announces the first batch of participants admitted to our stablecoin issuer sandbox. To facilitate the effective operation of the sandbox, only institutions that are able to demonstrate reasonable and sustainable business plan, as well as robust and compliant sandbox operations are admitted. Check out the latest list of sandbox participants on our website: https://lnkd.in/girqybb2 Our sandbox serves as a platform for participants to: 🧪 Test their business operations within a limited scope and risk-controlled environment as specified by the HKMA 🛠️ Engage in direct dialogue with the HKMA on future compliance with the proposed regulatory regime This collaborative approach contributes to the development of a fit-for-purpose regulatory regime, which will help promote the healthy, responsible and sustainable development of the stablecoin ecosystem in Hong Kong. ❗ Be aware that these sandbox participants will not raise funds from the public or offer any investment products in the name of the sandbox. Always stay vigilant – for any suspicious activities or claims related to the sandbox, verify with the HKMA to ensure legitimacy. #HKMAInnovates #StablecoinIssuerSandbox #Stablecoindevelopment #HKFinTech

📢 Calling all game-loving families, educators, and students! The HKMA booth is restaged at the Hong Kong Book Fair 2024! 📚   Join us at the HKMA booth (3C-E18, 3/F, “Children’s Paradise” Zone), 17–23 July, at the Hong Kong Convention and Exhibition Centre for an unforgettable and interactive experience. You may try out HKMA’s award-winning financial education board game “$mart Money Management 321”, and even get a chance to win our limited edition free educational board game and souvenirs! 🎁   Here’s what to expect:   1.     ♟️Interactive game zone – Test your knowledge with our engaging games, “Wants VS Needs” and “Cybersecurity Dos & Don’ts”.   2.     📸Photo spot for memorable moments at our Money Management Carnival Fireworks Show-themed photo booth.   3.     🎲Board game zone to try out the returning favourite “$mart Money Management 321” 💰 and master basic money management concepts. Don’t miss the chance to experience our latest innovation - the book fair-exclusive board game 🌱 themed on green financing in Hong Kong at designated time slots!   🌱 This innovative game is the first educational board game in the town that immerses players in the exciting world of green finance. Players can take on the role of an enterprise, issue green bonds, and secure green loans from banks, with a goal to go green and reduce carbon emission.   It’s a fun and engaging way for students to learn the basics of green financing and carbon emissions reduction. Players can also learn various messages related to green finance, global warming, climate change, ESG and greenwashing through the “Green Information Cards”.   Join us at the HKMA booth and embark on an exciting journey of financial literacy and green financing. See you there! 😊

Today, the Financial Services and the Treasury Bureau (FSTB) and the HKMA jointly released the consultation conclusions regarding the legislative proposal to implement the regulatory regime for stablecoin issuers in Hong Kong. This follows the two-month public consultation period launched last December, during which we received over 100 submissions from market participants, industry associations, business and professional organisations and other stakeholders. 🙌🏻 From the feedback received, a vast majority agreed that with the increased prevalence of digital assets, a regulatory regime should be introduced for fiat-referenced stablecoin issuers to facilitate proper management of the potential monetary and financial stability risks, as well as to provide transparent and suitable guardrails for stablecoin issuance activities. Chief Executive of the HKMA, Eddie Yue, said, “We are grateful for the respondents’ valuable comments and are encouraged by the general support for the proposed regulatory regime. We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.” As for next steps, the FSTB and the HKMA are finalising the relevant bill in light of the outcome of the consultation, with a view to introducing it into the Legislative Council as soon as possible. We thank those who have participated in this round of consultation. The HKMA will continue to maintain dialogues with the industry to facilitate the responsible and sustainable development of the digital asset ecosystem in Hong Kong. Read more about the announcement: https://lnkd.in/gDWtZUeN Delve into the consultation conclusions: https://lnkd.in/gpAGjQCm #Stablecoin #DigitalAssets #Regulation #Innovation #FinancialInnovation

🎉 Launched in 2017, Bond Connect has seen significant growth to become the primary channel for international investors’ access to the Mainland bond market. Success by the numbers: 📊 Foreign investors have increased their holdings of onshore interbank bonds for nine consecutive months, with bond holdings amounting to over RMB4,220 billion as of end-May 2024. 📈 The Northbound Scheme has attracted over 820 institutional investors, with average daily turnover soaring from around RMB 1.5 billion in its first month to around RMB 46.6 billion in May 2024 – a remarkable 30-fold increase! Upon the collaborative efforts of the People’s Bank of China (PBoC), the Hong Kong Monetary Authority (HKMA), and the Securities and Futures Commission (SFC), it was announced on 9 Jul that international investors will be able to use onshore bonds issued by the Ministry of Finance and policy banks on the Mainland and held under Northbound Bond Connect as margin collateral for Northbound Swap Connect transactions. 🙌 The measure will provide investors with the additional choice of non-cash collateral, reducing their liquidity cost and improving capital efficiency. It will also help vitalise investors’ onshore bond holdings and promote synergies between Bond Connect and Swap Connect, thereby further invigorating market participation in the Connect Schemes. The HKMA remains committed to meeting the investors’ evolving needs and facilitating the two-way cross-boundary capital flow. We will maintain close communication with the PBoC and relevant regulatory authorities on the Mainland and in Hong Kong to continue to broaden and enhance the Connect Schemes, with a view to promoting the high-quality opening-up of the Mainland financial markets and RMB internationalisation. 🤝 🌍   Read the HKMA Chief Executive Eddie Yue’s keynote speech at the Bond Connect Anniversary Summit 2024 (Chinese only) here: https://lnkd.in/gpjKACGe Learn more about the new measure on Swap Connect margin collateral arrangement: https://lnkd.in/gkryEm5K #BondConnect #SwapConnect #CrossBorderInvestment #HKMAinnovates #FinancialConnectivity #PBoC