TheHongKongChiefExecutive’s2024PolicySpeech,specificallyArticle99,outlinesacomprehensivestrategytoadvancetheterritory’scryptoecosystemandfintechinnovation.

ThegovernmentplanstopromoteCentralBankDigitalCurrencies(CBDCs),regulatoryframeworksforover-the-counter(OTC)trading,andtokenizationtechnology,aswellasintroducenewlegislationforstablecoins.

TheHongKongMonetaryAuthority(HKMA)isactivelytestingcross-borderpaymentsolutionsusingCBDCs.AspartofthemBridgeplatform,theHKMAisexpandingtechnologysolutionsforcommercialsettlementsandincreasingparticipationfromboththepublicandprivatesectors.

TheFinancialServicesandTreasuryBureau(FSTB)issettocompleteitssecondpublicconsultationonregulatoryproposalsforOTCtradingofcryptocurrencies.Italsoplanstointroducealicensingregimeforvirtualassetcustodyserviceproviderstostrengthentheregulatoryframework.

TheHKMAisleadingProjectEnsembletoexplorethetokenizationofreal-worldassetsandtheuseofdigitalcurrenciesforinterbanksettlement.Theinitiativeaimstodevelopinfrastructurefordigitalassettrading.TheHKMAhasalsolaunchedastablecoinsandboxforpotentialissuerstotesttheirbusinessplans.WorkingwiththeFSTB,itwillintroducearegulatorybillforfiat-referencedstablecoinissuerslaterthisyear.

Inordertoencouragetheadoptionoftokenizationtechnology,theHKMAwilllaunchtheDigitalBondGrantScheme.Theinitiativeaimstoencouragefinancialinstitutionsandissuerstoutilizetokenizationincapitalmarkettransactions.

*Thisisnotinvestmentadvice.

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