Latest news with #HKMA
South China Morning Post
7 days ago
- Business
- South China Morning Post
Crypto industry optimistic about stablecoins in Hong Kong but faces high compliance costs
In the days after Hong Kong passed a bill to regulate stablecoins on May 21, people in the industry celebrated the government's forward-looking stance on the cryptocurrency assets, but its stringent requirements – similar to how it regulated other virtual assets – could be a double-edged sword in the near term. 'Regular independent audits and strict disclosure obligations further bolster confidence in the sector, although in the short run it may increase operational costs and limit market entry, particularly for smaller or emerging stablecoin issuers,' said Amita Haylock, technology partner at Mayer Brown law firm. As the 2023 law on virtual asset trading platforms (VATPs) did for other cryptocurrencies, the new stablecoin ordinance – governing assets pegged to fiat currencies such as the US dollar (USD) and Hong Kong dollar (HKD) – imposes strict rules with high compliance costs on companies that require a licence to do business in the city. Stablecoin licences are governed by the Hong Kong Monetary Authority (HKMA), unlike other virtual assets, which fall under the Securities and Futures Commission (SFC). The VATP law has been criticised by some industry insiders as too onerous and hindering business activity in the city , hurting Hong Kong's efforts to become a crypto hub. Yet also like the VATP law, the stablecoin bill is seen as offering regulatory clarity that could spur more innovation in the future. An illustration featuring US President Donald Trump outside a cryptocurrency exchange in Hong Kong. Photo: Reuters 'I think the most important benefit is that it provides virtual asset businesses legal certainty,' Haylock said. 'Over time … the clarity provided in the stablecoins ordinance would encourage larger financial institutions to build token-based products in Hong Kong.'
South China Morning Post
27-05-2025
- Business
- South China Morning Post
Hong Kong embraces data trading as economic engine, finance chief says
Hong Kong is ramping up efforts to become an international data-trading hub by forging ties with mainland China and Southeast Asia, as cross-border data sharing is a new engine of an AI-driven economy that will benefit people and businesses, said Financial Secretary Paul Chan Mo-po 'We are also committed to opening and sharing data that the private sector and academia can use,' Chan said on Tuesday at the inaugural International Data Industry Alliance (IDIA) Global Summit in Hong Kong. The government's open data portal offers more than 5,600 data sets and recorded more than 60 billion downloads in 2024, he said. The value of data is 'immense', Chan said, adding that China's digital economy delivered more than US$4.8 trillion in revenue last year. That value would only rise as artificial intelligence (AI) large language models – driven by high quality, accessible data – unlocked new industrial and commercial opportunities, he said. More than 100 representatives from Hong Kong's data industry, technology enterprises, financial companies and the academic sector discussed cross-border data collaboration, security, compliance and scalable technology adoption at the summit. Government officials responsible for digital-economy initiatives in Thailand, Indonesia, the Philippines and Pakistan were also present at the event. The Commercial Data Interchange launched by the Hong Kong Monetary Authority in 2022 had processed more than 20 million data exchanges as of April 2025, enabling faster credit assessments and making loans more accessible to small and medium-sized enterprises, Chan said. Hong Kong 'remains an open, diverse and international city with the free flow of goods, capital talent and crucial data' under the one country, two systems framework, serving 'as a superconnector between China and the rest of the world', he added.
Coin Geek
23-05-2025
- Business
- Coin Geek
Hong Kong's stable future: New rules for digital dollars
Getting your Trinity Audio player ready... In a dimly lit chamber at Hong Kong's Legislative Council, lawmakers have cast their votes today to pass one of Asia's most comprehensive regulatory frameworks for digital currencies. With a single show of hands, Hong Kong has become the first common-law jurisdiction to give fiat-backed stablecoins a dedicated act of their own—the Stablecoins Ordinance—placing the Hong Kong Monetary Authority (HKMA) firmly in charge of licensing their issuers. The new ordinance carefully balances the twin imperatives of advancing innovation and maintaining financial stability, a delicate act that governments worldwide are attempting with varying degrees of success. Stablecoins, digital currencies designed to maintain a constant value by referencing fiat money like the United States dollar, have quickly emerged as critical infrastructure in the digital asset ecosystem since gaining popularity with the proliferation of Tether to all corners. Unlike their more volatile, speculative counterparts, stablecoins offer the programmability of blockchain technology (typically) without the price rollercoaster, making them potentially useful for everything from cross-border payments to decentralized finance applications. A marathon effort Getting here has been far from a fast or simple process. An HKMA discussion paper in January 2022 floated the idea of bringing stablecoins under their regulatory umbrella, inviting industry views on everything from reserve quality to redemption windows. A joint consultation by the Financial Services and the Treasury Bureau (FSTB) and the HKMA followed in December 2023, with conclusions issued seven months later. The bill itself was gazetted on December 6, 2024, debated in committee, and now finally passed. This phased approach has allowed regulators to develop nuanced policies informed by market developments and stakeholder input. 'The ordinance adheres to the 'same activity, same risks, same regulation' principle, with a focus on a risk-based approach to promote a robust regulatory environment,' explained FSTB Secretary Christopher Hui. The slogan may be clunky, but it signals an ambition to normalize digital money within traditional prudential rules rather than invent wholly new ones. In parallel to the development of the Ordinance, the HKMA has actively pursued sandbox initiatives focused on stablecoins and tokenization. These controlled environments have facilitated dialogue between regulators and market participants, allowing for practical feedback on proposed requirements while communicating supervisory expectations. Check the fine print At the heart of the legislation is its comprehensive licensing regime. Any entity issuing stablecoins in Hong Kong (or issuing Hong Kong dollar-referenced stablecoins anywhere in the world) must now obtain a license from the central bank. Those permits come with stringent conditions: issuers must maintain a one-to-one reserve backing with high-quality liquid assets, provide clear redemption rights, and implement robust anti-money laundering (AML) controls. Unlicensed issuance or advertising will be a criminal offense, and there's a high bar to entry, too. The law insists on paid-up capital of at least HK$25 million (US$3.19 million), or one percent of coins outstanding for non-banks, plus a separate pool of reserve assets with a market value equal to or exceeding the par value of outstanding stablecoins, ensuring a robust 1:1 backing. These reserves must be of high quality, highly liquid, and carry minimal investment risk. They must also be adequately protected against claims by other creditors and ideally held in the currency referenced by the stablecoins. Licensees must also commit to redeem at par, typically within a business day, publish an annual audit and proof-of-reserves statement (no attestations here, Bitfinex), file monthly disclosures of the reserve mix, police robust know-your-customer (KYC) and AML checks, as well as explain their coin mechanics in a public white paper. One quirk that will surprise decentralized finance (DeFi) purists is that licensed issuers are forbidden to pay interest on their coins. The ban is meant to prevent stablecoins from morphing into pseudo-money-market funds and keep them squarely in the realm of payments. Algorithmic designs such as the ill-fated TerraUSD are not explicitly barred, but the insistence on high-quality collateral renders them effectively out of scope for now. New competitive positioning For the digital asset industry, the immediate prize is certainty. After the collapses of Terra, Celsius, and FTX, investors crave proof that their dollars, euros, or Hong Kong dollars are waiting in a bank account. The ordinance makes proof compulsory, and you can bet that the ever-looming threat of jail will have scallywags on their toes. In turn, that reassurance should lift corporate treasurers' willingness to hold and use stablecoins for cross-border payments and on-chain settlement, deepening liquidity across decentralized exchanges and tokenized securities platforms. Traditional finance (TradFi) gains as well. Banks and brokers that once shunned crypto now have a rule book they understand: capital ratios, segregation, and white lists. The HKMA's transitional period lets incumbents pilot products without fear of retroactive sanction. Don't be surprised to see a wave of bank-branded coins designed for trade finance, wealth-management transfers, and custodians offering tokenized cash management. The regional stakes are larger still. Singapore was first out of the gate with exchange licensing, and Dubai offers zero tax (with ample marketing pizzaz, too), yet both have hesitated to pin stablecoins down. By offering legal finality and zero capital-gains tax on crypto trades, Hong Kong hopes to lure liquidity from both rivals. It also positions itself as a regulated bridge for Chinese capital, dovetailing with the Stock Connect and QFII channels linking Shenzhen and Shanghai to the outside world. Make no mistake, the Stablecoins Ordinance is a significant milestone in Hong Kong's proactive approach to digital asset regulation. It establishes a comprehensive framework that prioritizes consumer protection, transparency, and financial stability while creating space for responsible innovation. But this is just the start. The government plans a second policy statement on digital assets later this year, covering over-the-counter (OTC) trading and custody, with the Securities and Futures Commission (SFC) in tandem working on rules governing staking on exchanges. Each layer will increase the cost of non-compliance and tie digital asset activity closer to the mainstream financial system. Critics may lament the loss of permissionless purity, but Hong Kong is betting that most users prefer predictable permissions to romantic chaos. Watch | Spotlight On: Centi Franc—the truly stable stablecoin title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
23-05-2025
- Politics
- Yahoo
Websites falsely connect Marcos Sr to nonexistent banks
"The Marcos family, who appears out of it in most occasions, has been exposed! Involved in a $100B money laundering?" reads a Tagalog-language Facebook post published May 2, 2025. It was shared by the page Boldyakan, which used to support Marcos Jr but later became one of the president's fiercest critics. The post links to an April 29 report of alleged documents revealing bank accounts belonging to the late dictator Ferdinand Marcos Sr -- the current president's father. According to the report, the Marcoses used "large-scale gold transactions in Hong Kong as a cover to be suspected (sic) of conducting large-scale money laundering activities" amounting to more than US$10 billion. It goes on to claim a whistleblower submitted the supposed documents to the Hong Kong Monetary Authority (HKMA) on April 14. Screenshot of the report shared by the false posts taken May 23, 2025 The allegations circulated ahead of the Philippine mid-term polls on May 12, which were seen as a referendum on the current administration (archived link). Only six out of 11 Marcos-endorsed candidates secured a Senate seat, joining 12 others already in office as jurors at embattled Vice President Duterte's impeachment trial, which could see the Marcos rival permanently barred from public office (archived link). The narrative -- previously debunked by the collaborative Philippine fact-checking project -- also spread on TikTok, Weibo and Douyin, as well as in publications such as the Hong Kong-based Bastille Post, Taiwanese Meihua Media and Phoenix Television (archived link). Marcos matriarch Imelda claimed in 2013 that the family held around 6,000 to 7,000 tons of gold, although Marcos Jr denied its existence in 2022 (archived links here and here). The Philippine Supreme Court previously ordered the Marcoses to hand back over US$658 million found in their Swiss bank accounts -- a fraction of the $10 billion estimated to have been plundered from state coffers during the regime (archived link). While AFP cannot independently verify the Marcos family's alleged possession of secret gold accounts, the online documents list banks that do not exist. One purported contract shared in the articles shows payments sent to the "International and Commercial Bank of China (Asia) Limited" in Hong Kong. The supposed bank is identified by the unique SWIFT code "UBHKHKHH". But that code belongs to Industrial and Commercial Bank of China (Asia) Limited in Hong Kong (archived link). The bank in question also does not appear in the HKMA's database (archived link). Another image shared in the articles purports to show six of the 18 accounts linked to the elder Marcos. However, multiple keyword searches indicate the associated banks do not exist: There is no record of an "Ireland and Swiss and Cork Bank" in the Central Bank of Ireland's database of licensed financial institutions (archived link). An address listed for "International Hungary Bank" does not appear to exist -- a Google Maps search of "1550 Rimpau Avenue" leads to the US state of California, not Hungary (archived link). AFP also did not find the bank in the European country's registry of financial service providers (archived link). Two Japanese banks, allegedly named "Japan and Swiss Banking Corporation" and "Narita Saving and Trust," appear to be fabricated as well. They are not in the East Asian country's bank registry (archived link). There is no "Philippine Bank of Munich" listed in Philippine or German central bank records (archived links here and here). The bank is purportedly based in "Munich, Switzerland" -- but Munich is in Germany (archived link). Although Po Sang Bank was once a legitimate financial institution in Hong Kong, it was renamed Bank of China following a 2001 merger (archived links here and here). The document shared in the false posts is dated 2006. When asked about the online claims, an HKMA spokesperson said the agency "does not comment on individual cases," noting that "banks are required to report suspicious transactions to law enforcement agencies." "The investigation of crimes ... is carried out by law enforcement agencies in accordance with relevant laws and regulations in Hong Kong." AFP has previously debunked numerous myths about the Marcoses.
AFP
23-05-2025
- Business
- AFP
Websites falsely connect Marcos Sr to nonexistent banks
"The Marcos family, who appears out of it in most occasions, has been exposed! Involved in a $100B money laundering?" reads a Tagalog-language Facebook post published May 2, 2025. It was shared by the page Boldyakan, which used to support Marcos Jr but later became one of the president's fiercest . Image Screenshot of the false Facebook post taken May 22, 2025 The post links to an April 29 report of alleged documents revealing bank accounts belonging to the late dictator Ferdinand Marcos Sr -- the current president's father. According to the report, the Marcoses used "large-scale gold transactions in Hong Kong as a cover to be suspected (sic) of conducting large-scale money laundering activities" amounting to more than US$10 billion. It goes on to claim a whistleblower submitted the supposed documents to the Hong Kong Monetary Authority (HKMA) on April 14. Image Screenshot of the report shared by the false posts taken May 23, 2025 The allegations circulated ahead of the Philippine mid-term polls on May 12, which were seen as a referendum on the current administration (archived link). , joining 12 others already in office as jurors at embattled Vice President Duterte's impeachment trial, which could see the Marcos rival permanently barred from public office (archived link). The narrative -- previously debunked by the collaborative Philippine fact-checking project -- also spread on TikTok, Weibo and Douyin, as well as in publications such as the Hong Kong-based Bastille Post, Taiwanese Meihua Media and Phoenix Television (archived link). Marcos matriarch Imelda claimed in 2013 that the family held around 6,000 to 7,000 tons of gold, although Marcos Jr denied its existence in 2022 (archived links here and here). The Philippine Supreme Court previously ordered the Marcoses to hand back over US$ million found in their Swiss bank accounts -- a fraction of the $10 billion estimated to have been plundered from state coffers during the (archived link). While AFP cannot independently verify the Marcos family's alleged possession of secret gold accounts, the online Nonexistent shared in the shows payments sent to the "International and Commercial Bank of China (Asia) Limited" in Hong Kong. supposed bank is identified by the unique SWIFT code "UBHKHKHH". But that code belongs to (archived link). Image Screenshot comparison of the purported contract (L) and a page from the Industrial and Commercial Bank of China (Asia)'s official website The bank in question also does not appear in the HKMA's database (archived link). shared in the articles purports to show six of the 18 accounts linked to the elder Marcos. Image Screenshot of the circulating document, with elements highlighted by AFP However, multiple keyword searches indicate the associated banks do not When asked about the online claims, an HKMA spokesperson said the agency "does not comment on individual cases," noting that "banks are required to report suspicious transactions to law enforcement agencies." "The investigation of crimes ... is carried out by law enforcement agencies in accordance with relevant laws and regulations in Hong Kong." AFP has previously debunked numerous myths about the Marcoses.
