Adaptation of Stablecoin as a product within the modern financial system

Basic analysis of banks' strategies to improve operational efficiency and customer experience through automation, digitalisation and innovation.

Advice on legislative confirmation of digital assets as personal property. 

The Hong Kong Monetary Authority (HKMA) has published a consultation paper outlining a proposal to introduce new regulation to prudentially account for exposures to crypto-assets. The initiative reflects a desire to create a regulatory framework that addresses the unique risks associated with crypto-assets, while supporting the financial sector's engagement with this emerging asset class.

The Basel Committee is introducing new rules (SCO60) governing the accounting for cryptoassets by banks starting in 2025. These rules include criteria for valuing and categorising stablecoins and other cryptoassets, as well as technical adjustments to ensure clarity and uniformity of standards.

The requirements aim to standardise the disclosure of information on cryptoassets to improve transparency and reduce information asymmetry in the market. The rules apply to internationally active banks and include regular publication of reports and third-party verification of data.