HKMA Chief: Hong Kong Is Working on an Investor Protection Ordinance

Hong Kong is working on an investor protection ordinance, said Eddie Yue, the Hong Kong Monetary Authority's chief executive. He said that in the long run, CBDC and stablecoins could provide a more efficient and cost-effective way to trade. However, he noted that any new technology comes with some risk, whether it's innovation or operational risk.

"We can start by regulating off-chain activities, such as regulating virtual asset trading platforms. Hong Kong will soon introduce the anti-money laundering aspect, in addition to investor protection."

He also revealed that the Hong Kong government is working on separate regulations, in line with the international consensus on regulating the stablecoin industry.