Hong Kong's Stablecoin Industry Faces Gradual Regulatory Development

According to Foresight News, Hong Kong's stablecoin sector is still in its early stages, as stated by Sun Deji, Chairman of the Hong Kong Accounting and Financial Reporting Council. He cautioned against hastily implementing detailed auditing standards, which could negatively impact the industry. Sun anticipates that comprehensive guidelines for stablecoin auditing and accounting may be introduced in the next one to three years.Under the Stablecoin Ordinance effective from August 1, stablecoin license holders in Hong Kong are required to undergo annual independent audits to ensure transparency and compliance. Sun mentioned that the Hong Kong Accounting and Financial Reporting Council might only indirectly participate in stablecoin regulation. The regulatory approach for stablecoins is expected to be similar to the licensing of virtual banks, now referred to as digital banks. This approach will clarify how licensed institutions should be audited and how financial statements should confirm, measure, and disclose information.