Hong Kong Monetary Authority to oversee crypto issuance

The Hong Kong Monetary Authority (HKMA) announced that it will oversee stablecoin issuance and reserve management within the industry.

In a recently published document, the body gave its point of view on what the regulation of industries within Hong Kong should look like, with an emphasis on stablecoins related to payments.

The regulator added that all existing stablecoins are “mostly asset-linked and predominantly pegged” to the US dollar, including stablecoins like USDT and USDC.

“The rapid development of crypto assets, particularly stablecoins, is a subject of great attention in the international regulatory community, as it presents potential risks with respect to monetary and financial stability”, the HKMA assured.

The Monetary Authority is not the only body concerned about the risks of stablecoins, last year a working group from the United States published a report highlighting the trends of stablecoins and the risks of payment systems.

K. Tovar

Source: Cointelegraph