The Hong Kong Monetary Authority ( HKMA ) has issued a discussion paper on crypto assets and stablecoins, setting out its thinking on the regulatory approach for the digital assets, particularly payment-related stablecoins, and inviting views from industry and public stakeholders on the subject.

The HKMA’s approach takes into account, among other things, the international recommendations, the market and regulatory landscape locally and in other major jurisdictions, and the characteristics of payment-related stablecoins. Its proposed policy direction is set out in section 5.3 of the paper.

“The rapid development of crypto assets, particularly stablecoins, is a topic of keen attention in the international regulatory community as it presents possible risks regarding monetary and financial stability,” says Eddie Yue, the HKMA’s chief executive. “The HKMA has been closely tracking the relevant developments [in the sector]. We look forward to hearing the feedback from stakeholders and will draw up a risk-based, pragmatic and agile regulatory regime on this front.”

To facilitate stakeholders sharing their views, the HKMA has highlighted certain issues in the form of questions and answers in the paper, available on the HKMA website. Members of the public and the industry are welcome to submit responses by email to stablecoin_feedback@hkma.gov.hk on or before March 31 2022.