Hong Kong is planning to improve its regulation of digital assets over the next 18 months as part of its goal to become a global centre for financial technology.
This was discussed at the recent Foresight 2024 annual summit, where David Chiu, a member of the Legislative Council of Hong Kong Special Administrative Region (Technology and Innovation), shared the city’s plans to attract technology experts, build new infrastructure, and strengthen laws around digital assets.
Chiu explained that these steps are important for the growth of the tech industry in the next few years. He noted that while the digital asset industry has made some progress, it is still in its early stages. He also spoke about the need for a strong exchange system and mentioned that new laws related to stablecoins should be introduced soon.
Following this, the government plans to put in place stronger rules and enforcement for digital asset products within the next year to 18 months.
Moreover, the Hong Kong Monetary Authority (HKMA) announced the first participants in its stablecoin sandbox. These include a company connected to a major Chinese e-commerce business, a local fintech firm, and a group involving Standard Chartered Bank, Animoca Brands, and Hong Kong Telecommunications.Â
One participant, Jingdong Coinlink Technology Hong Kong Limited, which is part of JD Technology Group, plans to issue a stablecoin tied to the Hong Kong dollar. However, being part of the sandbox does not mean automatic approval to issue stablecoins.
Also Read: Hong Kong Legislator Proposes Bitcoin for Financial Reserves
