Hong Kong authorities to tighten control over stablecoin issuers

by in Cryptocurrency News

Hong Kong

The Hong Kong Monetary Authority fears that stablecoin issuers have insufficient reserves to back up all of their tokens. To this end, the regulator plans to tighten control over such companies to protect investors.

On the eve of the Department published a document in which it spoke about the risks of investing in stablecoins and the need for regular checks of the financial condition of issuers.

The 34-page document is out for public comment. Experts and businesses have the right to express their opinions and suggestions on this issue.

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The Monetary Authority stressed that the market supply of stable coins reached $ 150 billion in December, this year the capitalization growth will continue. Almost all of these assets are pegged to the US dollar. The largest of them are Tether and USD Coin.

The regulator plans to develop a control system and the necessary regulatory framework by 2023 or by 2024.