HKMA First Targets In 2023: Stablecoins Linked To Value Of Legal Currencies

Cryptonews

According to the HKMA, these stablecoins pose higher and more imminent monetary and financial stability risks, hence the need for regulation.

“As a priority, we will start with regulating stablecoins that purport to reference to one or more fiat currencies, given the higher and more imminent monetary and financial stability risks that they may pose. We believe that with the right guardrails in place, the industry can explore the potential of digital finance in a safe and healthy manner.”

The HKMA believes that with proper guardrails in place, the industry can safely and healthily explore digital finance’s potential. As such, the regulatory updates will prioritize the regulation of stablecoins and strengthen the collaborative eco-system response to money laundering and terrorist financing risks. This will be complemented by specific guidance on a proportionate approach to the Politically Exposed Person requirements, which will support effective risk-based industry implementation of fundamental legislative changes.

In addition to the above, the HKMA will broaden the scope of existing public-private partnerships and support the launch of bank-to-bank information sharing to enable faster detection of suspicious accounts and deter abuses. This will increase protection for victims of fraud and facilitate recovery of their losses.

The HKMA will also focus on Regtech adoption, including data analytics, through AML Regtech Labs and other AML/CFT Regtech initiatives. The HKMA aims to develop a macro analytics capability to complement its target=”_blank” rel=”noreferrer noopener”>https://linktr.ee/coincu