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Analysis: Hong Kong Monetary Authority Conditionally Allows Some Stablecoin Cases to Mismatch Currency
Summary: According to reports from Mobile Payment Network, the Hong Kong Monetary Authority is conditionally allowing some stablecoin cases to mismatch currency. Licensed institutions must prove they always have the ability to maintain full redemption, including under extreme and market pressure conditions, while ensuring that any currency mismatch measures do not transfer risk to stablecoin holders. ...
According to reports from Mobile Payment Network, the Hong Kong Monetary Authority is conditionally allowing some stablecoin cases to mismatch currency. Licensed institutions must prove they always have the ability to maintain full redemption, including under extreme and market pressure conditions, while ensuring that any currency mismatch measures do not transfer risk to stablecoin holders.
In addition, licensed institutions must discuss and obtain approval from the Hong Kong Monetary Authority before proposing plans for the composition and proportion of reserve assets, as well as risk management measures.
Furthermore, the Hong Kong Monetary Authority does not prohibit licensed institutions from hiring distributors outside of Hong Kong. However, licensed institutions should conduct due diligence and risk assessments before hiring, continuously monitor throughout the process, and adhere to relevant third-party risk management measures, while also paying special attention to compliance with local laws and regulations.
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Link: Analysis: Hong Kong Monetary Authority Conditionally Allows Some Stablecoin Cases to Mismatch Currency [Copy]
