Hong Kong Treasury Secretary: Will submit a draft bill on stablecoin and virtual asset over-the-counter trading services to the Legislative Council

According to a report by Caixin, Hong Kong Financial Secretary Paul Chan Mo-po introduced the expenditure budget and work focus for the fiscal year 2024-25, stating that a variety of central bank digital currency cross-border networks (mBridge) are expected to be launched this year, with the first phase of services focusing on settling cross-border transactions for enterprises using various central bank digital currencies. In addition, the "digital renminbi" will also expand its pilot scope in Hong Kong, further improving cross-border payment efficiency and user experience. In terms of virtual assets, the government is promoting a series of measures to strengthen regulation and promote the stable and responsible development of the virtual asset market in Hong Kong. Specifically, the Hong Kong Monetary Authority launched a stablecoin sandbox in March this year, allowing institutions interested in issuing stablecoins to conduct testing within a controlled range. The government has also consulted the public on the regulation of fiat-backed stablecoin issuers and virtual asset over-the-counter trading services, and is considering the feedback received. Depending on the progress of preparatory work, the draft legislation will be submitted to the Legislative Council as soon as possible.