Story Highlights:
- Standard Chartered, Animoca, and HKT plan an HKD stablecoin under HKMA’s oversight.
- Hong Kong’s stablecoin bill sets new rules for fiat-linked tokens marketed in the region.
- Authorities accept Bitcoin, Ether as asset proofs in Hong Kong’s immigration program.
Standard Chartered Bank (Hong Kong) Limited (SCBHK), HKT, and Animoca Brands have entered into agreements to establish a joint venture.
The collaboration targets HKMA license application under the regulatory framework to develop a stablecoin backed by Hong Kong dollars.
The plan fits within the city’s multifaceted approach to develop Hong Kong as a leading digital assets center.
Develop a Hong Kong Dollar Stablecoin
The joint initiative between SCBHK, Animoca Brands and HKT will use their respective company capabilities to develop the stablecoin platform.
The financial infrastructure of SCBHK combined with its governance expertise in stablecoin issuance positions it to support the program. Since the organization has already collaborated with multiple global stablecoin companies.
The bank maintains its position as a key player in Hong Kong’s digital asset market through active participation in all HKMA tokenized money projects from the past few years.
Bill Winters, Group Chief Executive, Standard Chartered, said,
Through its vital Web3 network, Animoca Brands intends to find crypto-native opportunities. The company plans to explore various use cases that could integrate stablecoins into broader digital financial markets.
HKT, a major player in technology and telecommunications, intends to apply its mobile wallet expertise to improve payment solutions.
The focus will be on enhancing domestic and cross-border transactions while benefiting both merchants and consumers.
Hong Kong’s Regulatory Landscape
Hong Kong authorities implemented this measure on the heels of the ongoing stablecoin regulatory work at the legislative level of the region.
A stablecoins bill appeared in the Gazette of December after the government submitted it for its first reading. It took place on December 18.
The bill provides regulatory management systems for all fiat-linked stablecoins and those backed by the Hong Kong dollar, that operate in or target the Hong Kong territory.
The regulations cover stablecoins that are intended for public distribution throughout the Hong Kong area.
Further, the authorities maintain the urge to implement more stringent rules regarding these provisions when financial stability requires additional oversight.
HKMA representatives emphasized that the framework was developed after extensive consultations with industry participants. The regulatory approach aims to foster a stable and well-regulated digital asset environment.
The government stated that it seeks to ensure compliance while maintaining a competitive edge in the global digital finance sector.
Crypto Use in Hong Kong’s Immigration Program
In another development, Hong Kong authorities have officially stated their position regarding crypto assets usage as a proof of wealth for immigration schemes.
The local accounting professional provided evidence of Bitcoin and Ether serving as valuable proofs of clients’ assets in two distinct cases.
The acceptance of Bitcoin and Ether as immigration scheme assets indicates institutional acceptance of crypto despite their absence from the program guidelines.
Hong Kong’s investment promotion department, InvestHK, stated that there are no specific requirements regarding asset classes for the New Capital Investment Entrant Scheme.
The program, relaunched in March 2024, requires applicants to demonstrate control over assets worth at least HK$30 million ($3.9 Million). Once verified, applicants must invest in approved assets to obtain residency.
The jurisdictions of Singapore and Dubai continue to develop their efforts toward securing their positions as international centers for virtual asset operations.
Meanwhile, Hong Kong further advances its digital asset policies to integrate crypto into regulatory financial markets under strict monetary policy conditions.
Ultimately, expert analysts consider Hong Kong’s allowance of crypto in financial valuations as a significant indicator of its regulatory policy change.
