Hong Kong's central banking institution, the Hong Kong Monetary Authority (HKMA), has released a survey to gauge public opinion on cryptocurrency and stablecoin regulation. The state-backed regulator aims to establish a regulatory framework by 2023-24.
The HKMA's Discussion Paper on Crypto-assets and Stablecoins highlights the rapid growth of the stablecoin market in terms of market capitalisation since 2020. Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS).
According to the HKMA, the current size and trading activity of cryptocurrencies may not pose a direct threat to the stability of the global financial system from a systemic perspective.
Based on the above figure, the HKMA article shows that the global market capitalization was about $150 billion in December 2021, "representing about 5% of the total cryptocurrency market." The regulator also released a list of eight questions to get policy-related recommendations, citing five possible regulatory outcomes - no action, opt-in regime, risk-based regime, catch-all regime and outright ban.
