Circle Responds to Hong Kong's Proposed Stablecoin Regulatory Framework

Circle Internet Financial has responded to the Hong Kong Monetary Authority's (HKMA) proposed regulatory framework for stablecoins, emphasizing the importance of a clear, risk-based approach that distinguishes fiat-referenced stablecoins (FRS) from other digital assets. Circle supports HKMA's initiative to introduce stablecoin-specific legislation first, which will help mitigate monetary risks, protect consumers, and reduce cross-border payment costs. Circle agrees with the proposed requirements for stability, reserve management, and transparency, aligning with international regulatory trends. They commend HKMA's stance on anti-money laundering and counter-terrorism financing compliance and advocate for a licensing path for foreign FRS issuers whose regulations are equivalent to Hong Kong's. This approach is seen as a means to bolster Hong Kong's status as an international financial center, enabling interoperable and well-regulated international stablecoins to benefit retail users and businesses with lower costs and faster transactions.