Financial technology is the new frontier in Hong Kong's financial industry. The Legislative Council Secretariat's Policy Pulse of Consolidating Hong Kong's status as an international financial centre also mentions that Hong Kong has achieved remarkable success in the development of financial technology. Currently, there are over 1,100 fintech companies in Hong Kong, covering various areas such as mobile payments, cross-boundary wealth management, artificial intelligence financial services consulting, wealth and investment management, compliance technology, and more. This includes 8 virtual banks, 4 virtual insurance companies, and 7 licensed virtual asset trading platforms.
To further enhance the regulatory framework for virtual asset activities and provide protection for users of fiat-backed stablecoins, the Hong Kong government submitted the Stablecoins Bill to the Legislative Council on Dec. 18, 2024, to introduce a licensing regime for stablecoin issuers. Regulated entities must obtain a license to issue fiat-backed stablecoins in Hong Kong and actively promote their issuance to the public. Bills Committees have been established in the Legislative Council to conduct a detailed study of the bill.
Members of the council have suggested that the government consult with the Hong Kong Institute of Certified Public Accountants or the Accounting and Financial Reporting Council to promptly implement guidelines for reporting and auditing virtual assets, providing the accounting industry with a reference to assist stablecoin issuers in complying with the proposed licensing regime's regulatory requirements.
e-CNY Wallet via FPS to Begin Trial Mid-Year
In May last year, the Hong Kong Monetary Authority and the People's Bank of China announced the expansion of the trial scope of the digital renminbi in Hong Kong. Hong Kong residents can open personal digital renminbi wallets (e-CNY wallets) in Hong Kong using their Hong Kong mobile phone numbers and top up these wallets via FPS, facilitating cross-boundary retail payments between the two regions. The trial service is expected to be launched around mid-year this year.
The Hong Kong government maintains an open and accommodating attitude towards the development of virtual assets in Hong Kong. The Policy Pulse mentioned that in June 2023, Hong Kong implemented a licensing regime for virtual asset service providers, allowing participants in the virtual asset market to develop responsibly and sustainably. The Legislative Council's House Committee has established a subcommittee to review the application and development of Web3 and virtual asset technologies in Hong Kong, and to make recommendations on relevant regulations and policies.
Additionally, the Hong Kong Monetary Authority is collaborating with other central banks and the Innovation Hub Centre of the Bank for International Settlements to work on a project called mBridge, to explore the application of central bank digital currencies and innovative solutions to address pain points in cross-boundary payments and settlements. By June 2024, the mBridge project had entered the "minimum viable product" stage.
Related News:
Comment