This photo taken on April 11, 2023 shows the gate to the Hong Kong Monetary Authority in Central, Hong Kong. (CALVIN NG / CHINA DAILY)

Hong Kong Monetary Authority has launched a public consultation on stablecoins, a crypto-asset designed to maintain a stable value relative to a specified asset, or a pool or basket of assets, and will establish a regulatory framework by the end of next year, according to Joseph Chan Ho-lim, Under Secretary for Financial Services and the Treasury. 

The Hong Kong SAR government has been focusing on the development of Web 3.0, Chan said at Global Innovation Day 2023, organized by Hong Kong Management Association on Monday. 

HK has been actively participating in the value chain of virtual assets and successfully issued tokenized green bonds

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In October 2022, the government issued a policy statement on the development of virtual assets in Hong Kong, setting out its policy stance and approach to developing a vibrant sector and ecosystem for virtual assets in the city. 

It adopts the “same activity, same risks, same regulation” principle for regulation, so that the virtual assets industry can develop steadily in Hong Kong. In addition, following such regulation can also protect investors and ensure compliance with international rules such as anti-money laundering rules. 

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The city has been actively participating in the value chain of virtual assets and successfully issued tokenized green bonds in February this year. Chan said the government will continue to support the development of the industry in the future and will welcome the firms and talent to Hong Kong.