Hong Kong to enhance Digital Asset Regulations in 18 Months

Hong Kong announced that it plans to enhance its laws pertaining to digital assets in the next 18 months.

David Chiu, a member of the Legislative Council for the Hong Kong Special Administrative Region, discussed the city's initiatives to draw in tech talent, develop new infrastructure, and establish robust legislative oversight.

For the next five to ten years, Chiu emphasized, this initiative will be critical to the technology sector. We are still in the very early stages of the digital asset industry, even though it has advanced significantly in recent years, according to Chiu.

Chiu said that sandbox tests have already been finished and that the government will enhance oversight and enforcement of laws pertaining to financial products involving digital assets within the next year or so. During the next phase, project parties will be encouraged to look into more cutting-edge financial products in the Asian city of Hong Kong.

The first participants in the stablecoin issuer sandbox were revealed by the Hong Kong Monetary Authority (HKMA) on July 18. Among these participants are a local fintech company, a company associated with a major Chinese e-commerce retailer, and a consortium comprising Standard Chartered Bank, Hong Kong Telecommunications, and Animoca Brands.

The JD Technology Group subsidiary Jingdong Coinlink Technology Hong Kong Limited is one of the participants and plans to introduce a 1:1 stablecoin backed by the Hong Kong dollar (HKD). However, the company has made it very clear that entry into the Sandbox does not imply endorsement or approval to issue stablecoins, the post added.

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