USA and Hong Kong Aim for Stablecoin Regulation by 2024

The United States and Hong Kong are leading the global race in forming stablecoin regulation consensus, with both nations aiming to implement the legal frameworks within one years’ time.

Cryptocurrency regulation has been a grey area for many; from security classification to the extent of crypto utility, regulating cryptocurrency trading and use has and remains to be a challenge.

The Hong Kong Monetary Authority (HKMA) has successfully completed a public consultation on the regulation of stablecoins in the Asian nation, and aims to introduce clear legal guidelines for the stablecoin market towards the end of 2024.

Over the past five years, Hong Kong enjoyed growing interest from firms entrenched within financial technology (fintech), according to Joseph Chan Ho-Lim, Under Secretary for Financial Services and the Treasury of the government of Hong Kong.

Chan also mentioned that the nation’s authorities are actively working to promote Web3 technologies and ecosystems with a predominant focus on protecting investors.

In another light, the United States House Financial Services Committee has introduced three draft stablecoin bills by the first week of June, 2023. The latest bill aims at clarifying the key powers of the Federal Reserve; the nation’s financial watchdog which has been cracking down on major crypto exchanges including Binance and Coinbase.

Both the United States and Hong Kong have been accelerating efforts towards cryptocurrency regulation which encapsulates rules and regulations for stablecoin issuers, crypto-focused business and the general use of cryptocurrencies.

Sources:

https://cointelegraph.com/news/hong-kong-united-states-stablecoin-regulations

https://cryptoslate.com/hong-kong-seeks-fast-regulatory-action-on-stablecoins/

https://www.cryptopolitan.com/us-hong-kong-stablecoin-regulations-soon/

https://www.hkma.gov.hk/eng/regulatory-resources/consultations/closed/