加密资产和稳定币讨论文件的结论

ConclusionofDiscussionPaperonablecoinsJanuary232contents1.Executivesummary 32.Background 73.DevelopmentssinceissuanceoftheDiscussionPaper 84.Outcomeofthefeedbackreceived,ourresponse,andtheproposedwayforward 115.Nextsteps 26Annex1–Recentpolicydevelopmentsamonginternationalorganisations 28Annex2–Recentpolicydevelopmentsamongmajorjurisdictions 32Annex3–Listofrespondents 353utivesummarystablecoins1(the“DiscussionPaper”)andinvitedfeedbackfromstakeholders.ThetheHKMAsthoughtsongivingprioritytothedevelopmentofaregulatoryframeworkfor“payment-relatedstablecoins”,i.e.stablecoinsthatmayhavethepotentialtodevelopintoawidelyacceptablemeansofpayments,whileprovidingflexibilityintheregimetomakeadjustmentstothescopeofstablecoinsthatmaybesubjecttoregulationasneededinthefuture.1.2.Sincethen,thecrypto-assetmarketshavecontinuedtoevolve.Ofnote,thestablecoinmarketexperiencedmuchpricevolatilityinMay2022subsequenttotheexchangesalsoranintotroubleegFTXinNovember2022.Againstthisbackdrop,authoritieshavecalledformorethattheycouldpotentiallypose.Theinternationalregulatorybodies,standard-settingbodies(“SSBs”)andsomemajorjurisdictionshaverespondedwithmorespecificpolicy1.3.Itisworthnotingthatwhilethedefinitionofstablecoinscouldtechnicallycaptureawidespectrumofcrypto-assetstructuresthataimtomaintainastablevalue,2internationalregulatorybodies,SSBsandmajorjurisdictionshavebeenaccordinghigherprioritytothosestablecoinsthathaveapotentialreachanduseacrossmultiplejurisdictionsincludingasmeansofmakingpaymentsand/orstoresofvalue.tablecoinsandhavelinkageswiththetraditionalfinancialsystem,therebycreatinghigherandmoreimminentmonetaryandfinancialstabilityrisksthanothertypesofstablecoinsorothercrypto-assets.Majorjurisdictionsalsonotetheimportanceofbuildinginappropriateflexibilityintheregulatoryregimetoadjusttheregulatoryscopetocopewiththerapidlymovingmarketandinternationalregulatorydevelopments.1.4.Bytheendofthefeedbackperiodon31March2022,theHKMAreceived58submissionsRespondentsgenerallyindicatedtheirsupportfortheHKMA’sproposalofbringingstablecoinsintotheregulatoryperimeter.TakingintoaccountthelatestdtheHKMAwillfurtherproceedwithputtinginplacearegulatoryregime.Theproposedkeyparametersofsucharegimearesummarisedasfollows:1TheFinancialStabilityBoard(“FSB”)definesstablecoinsasacrypto-assetthataimstomaintainastablevaluerelativetoaspecifiedasset,orapoolorbasketofassets.2Forinstance,basedonthedefinitionoftheFSB,anycrypto-assetthatpurportstoreferenceitsvaluetoanykindofasset(beitfiatcurrencies,commodities,oranothertypeofcrypto-asset)couldtechnicallybecapturedunderthisdefinition.4hattorylicensingregime.TheHKMAwilladoptarisk-basedapproachinscopinginstablecoinstructuresforregulationundertheproposedregime.Asapriority,theHKMAwillstartwithregulatingstablecoinsthatandmoreimminentmonetaryandfinancialstabilityrisksthattheymaypose.Flexibilitywillbebuiltintoenabletheauthoritytoscopeinotherstablecoinstructure(s)forregulationundertheproposedregimeinthefuture.vitiesregulatedKeyactivitiesthatarerelatedtoanin-scopestablecoin,e.g.:(i)Governance:establishmentandmaintenanceoftheruleserninganinscopestablecoinarrangement(ii)Issuance:issuing,creationordestroyingofanin-scope(iii)Stabilisation:stabilisationandreservemanagementarrangementsofaninscopestablecoin(whetherornotsucharrangementsareprovidedbytheissuerand(iv)Wallets:provisionofservicesthatallowthestorageoftheusers’cryptographickeyswhichenableaccesstotheusers’holdingsofanin-scopestablecoinandthemanagementofsuchstablecoins.tiesthatwillrequireancefromMAtitiesthaticonductaregulatedactivityinHongKong;(ii)activelymarketaregulatedactivitytothepublicofHongecointhatpurportstoreferencetothevalueoftheHongKongdollar;(iv)theauthorityisoftheopinionthatshouldbesoregulated,havingregardtomattersofsignificantpublicinterest.atoryciplesComprehensiveregulatoryframework:Appropriateregulatoryrequirementswillbedevelopedonareassuchasbutnotlimitedtoownership,governanceandmanagement,financialresourcesrequirements,riskmanagement,anti-moneylaunderingandcounter-terroristfinancing(“AML/CFT”),userprotection,andregularauditsanddisclosurerequirements.fthereserveassetsofastablecoinarrangementshouldmeetthevalueoftheoutstandingstablecoinsatalltimes.Thereserveassetsshouldbeofhighqualityandhighliquidity.Stablecoinsthatderivetheirvaluebasedonarbitrageoralgorithmwillnotbeaccepted.referencedfiatcurrencyatparwithinareasonableperiod.3Thislistsetsoutthekeyactivitiesforeasyreferenceandshouldnotbetreatedasanexhaustivelist.5Principalbusinessrestriction:4Theregulatedentitiesshouldnotconductactivitiesthatdeviatefromitsprincipalbusinessaspermittedundertheirrelevantlicences.Forexample,walletoperatorsshouldnotengageinlendingactivities.tationBy2023/24.slativeTheHKMAisweighingtheprosandconsbetweenintroducinganewlegislationandamendingexistinglawsforimplementationoftheregulatoryregime.1.5.Amoredetailedconsultation,withmoregranularinformationabouttheregulatoryregime,willbeconductedinduecourse.1.6.Asregardsthewidercrypto-assetspace,andonthebasisofthe“PolicyofVirtualAssetsinHongKongissuedbytheHongKongwithotherstakeholdersintheHongKongSARGovernmentandfinancialregulators,andactivelyparticipateinrelevantinternationalfora.TheHKMAembracesfinancialinnovationsandencouragesinstitutionstoexplorethepotentialofdistributedledgerosupporttheresponsibledevelopmentofvirtualassetecosystemtimewewillalsoworkwiththeHKSARGovernmentandfinancialregulatorstoprioritiseregulatoryeffortsusingarisk-based,“sameactivity,sameregulation”approachanddrawingreferencefromapplicableinternationaltinuetomonitormarketdevelopmentsandtherisksthatdifferentcategoriesofcrypto-assetmayposetomonetaryandfinancialstability,aswellasactivelyparticipateintherelevantinternationalregulatorydiscussions,withaviewtoworkingwiththeHKSARGovernmentandfinancialregulatorstoconsidertheappropriatetreatmentforthewidercrypto-assetspace.1.7.Asarelatedmatter,theHKMAnotesthattheactivitiesbeingproposedtoberegulatedundertheaforesaidstablecoinregimemightoverlapand/orhaveinterfacewithotherfinancialregulatoryregimesinHongKong,e.g.thelicensingregimeforvirtualassetserviceproviders(“VASP”)tobeadministeredbytheSecuritiesandFuturesCommission(“SFC”).TheHKMAwillconductfurtherassessmentandcontinuetoworkwithotherstakeholdersintheHKSARGovernment,localfinancialregulatorsaswellasrelevantstakeholderswhenformulatingthedetailsoftheregimeinordertoavoidregulatoryarbitrage,identifyandaddressregulatoryoverlapsorgapsandmitigatetherisksarisingfromdifferentactivities.4AsAuthorizedInstitutions(“AIs”)arealreadysubjecttosimilarormorestringentregulatoryrequirementswithrespecttotheirdeposit-takingbusiness,itisproposedthattheprincipalbusinessrestrictiondoesnotapplytoanAIthatisinscopeforthepurposeoftheproposedregulatoryregime.61.8.Thisfeedbackconclusionisorganisedasfollows:Chapter2providesabackgroundofthepaperandChapter3setsoutrecentnotablemarketandregulatorydevelopments.Chapter4providesasummaryofmajorcommentsreceivedinrespectandtheHKMAsresponsetoanumberofkeyissuesChapter5setsouttheproposednextsteps.72.Background2.1.InJanuary2022,theHKMAissuedtheDiscussionPaper.ThePaperoutlinedtheHKMA’sthoughtsonthedevelopmentofaregulatoryframeworkforstablecoinsofstablecoinsthatmaybesubjecttosucharegulatoryregime,andinvitedfeedbackfromstakeholders.ThepolicyobjectivesaretosafeguardHongKong’smonetaryandfinancialstabilitywhilesupportingfinancialinnovation,withaviewtoadoptingtherelevantinternationalregulatoryrecommendations.perstablecoinsasasubsetofcryptoassetshasthatpurporttoreferencetofiatcurrencies,havethepotentialtohaverelativelybroadandfrequentinterconnectionwiththemainstreamfinancialsystemandday-to-dayicactivitieshenceposingmoredirectandimminentriskstothefinancialsystem.Thereisalsoconcernthatstablecoinsbackedbyassetsbycryptoassetscouldspillovertothetraditionalfinancialsystem.Inlightofthemonetaryandfinancialriskconsiderationsinrelationtostablecoins,wesetoutintheDiscussionPaperourintentiontoapplysedinpayments.TheDiscussionPaperalsosetoutthefollowingdiscussionquestionsandinvitedviewsfromtheindustryandthepublicontheregulatoryapproach:regulateactivitiesrelatingtoalltypesofstablecoinsorgivepriorityrelatedstablecoinsthatposehigherriskstothemonetaryandfinancialsystemswhileprovidingflexibilityintheregimetomakeadjustmentstothescopeofstablecoinsthatmaybesubjecttoregulationasneededinthefuture?Q2Whattypesofstablecoin-relatedactivitiesshouldfallundertheregulatoryambit,e.g.issuanceandredemption,custodyandadministration,reservesmentQ3Whatkindofauthorisationandregulatoryrequirementswouldbeenvisagedforthoseentitiessubjecttothenewlicensingregime?Q4WhatistheintendedcoverageastowhoneedsalicenceundertheintendedatoryregimethereberegulatoryoverlapwithotherfinancialregulatoryregimesinHongedvaluefacility(“SVF”)licensingregimeofthePaymentSystemsandStoredValueFacilitiesOrdinance(“PSSVFO”)?Q6Stablecoinscouldbesubjecttorunandbecomepotentialsubstitutesofbankdeposits.ShouldtheHKMArequirestablecoinissuerstobeAIsundertheBankingOrdinance,similartotherecommendationsintheReportonStablecoinsissuedbytheUSPresident’sWorkingGrouponFinancialMarkets?8Q7WouldtheHKMAalsohaveplantoregulateunbackedcrypto-assetsgiventheirgrowinglinkagewiththemainstreamfinancialsystemandrisktofinancialstability?Q8Forcurrentorprospectivepartiesandentitiesinthestablecoinsecosystem,whatshouldtheydobeforetheHKMAsregulatoryregimeisintroduced?2.3.ThispapersummarisesthefeedbackreceivedfromtherespondentsandprovidestheHKMA’scorrespondingresponses.Italsoprovidesasummaryofthelatestmarketandpolicydevelopmentswhichinformedourconsiderationandtheproposednextsteps.3.DevelopmentssinceissuanceoftheDiscussionPapermarketdevelopmentshasexperiencedroundsofpricevolatility.Amongothers,themarketcapitalisationofcrypto-assethasshrunkbymorethanhalf(Chart1a),whereasthatofstablecoinhadmaintainedgrowthuntilApril,beforedecliningwiththewidercrypto-assetmarketinMay(Chart1b).ChartaMarketCapitalisationofCrypto-assets(inUSdollar)Source:C(Dataupto31December2022)9rtbMarketCapitalisationofMajorStablecoinsSource:C(Chart1bshowsthetop10stablecoinsbasedontheirrespectivemarketcapitalisationasat31December2022)3.2.Twonotableincidentshappenedinthecrypto-assetmarketin2022.InMay,TerraUSD(“UST”),thethenlargestalgorithmicstablecoinbymarketcapitalisation,lostitspegtotheUSdollar,anditsstabilisationmechanismbrokedown.Afterwards,thevalueofTether(“USDT”),thethenlargeststablecoin,felltoUS$0.95beforerecoveringtheUS$1.00peg.Subsequenttotheseincidents,authoritiesaroundtheworldhaveexpressedrenewedconcernsaboutstablecoins.5Somecrypto-exchangesassetexchanges,suspendedwithdrawalsandsubsequentlyannouncedthatithadfiledforbankruptcyintheUS.Itsnativetoken,i.e.theFTT,alsocollapsed.Theknock-oneffectcausedbytheseincidentsacceleratedorledtothefailuresofotherfirmsinthetoassetmarketsAsthesituationfurtherunfoldedthereweremoresignspointingtowardsissuesaboutthefirm’soperationandgovernance,e.g.allegedlyimproperuseofcustomerfundstopropupanotherentitythatwasfoundedbythefounderofFTX,misconductandpotentialfraud.3.3.Whiletheaforementionedmarketincidentswerenotconfinedtostablecoins,therearelessonslearntfromthestablecoinperspective.Forinstance,theeventshaverevealedcertainvulnerabilitiesorevenfailuresinmultipleaspectsincludinggovernance,management,stabilisationmechanisms,transparencyanddisclosuretousers.Anotherobservationisthatcertainfinancialactivitiesrelatedtocrypto-assetand/orstablecoinscarrysimilarrisksasconventionalfinancialservices.However,thefactthattheywereconductedinabundledmanner,e.g.bythesameentityordifferent5On12May2022,USTreasurySecretaryJanetYellenexpressedthattherunanddeclineinvalueofUSTdemonstratedtheurgencyofestablishingaregulatoryframeworktocopewiththefinancialstabilityrisksbroughtbystablecoins.On16May2022,FabioPanetta,amemberoftheExecutiveBoardoftheEuropeanCentralBank,commentedthatstablecoinsdidnotbenefitfromdepositinsuranceorhaveaccesstocentralbankstandingfacilitiesandwerethereforevulnerabletoruns.affiliatedcompaniesofthesamefinancialgroup,couldgiverisetosignificantconcentrationrisksandconflictsofinterests.orpolicyandregulatorydevelopmentsandmajorjurisdictionsmadeprogressinattendingto,andproposingwaystoaddressrisksbroughtbycrypto-assets.InOctobertheFSB,inconsultationwithrelevantinternationalSSBsandinternationalorganisations,publishedaproposedframeworkfortheinternationalregulationofcrypto-assetactivities.Theframeworkprovidedrecommendationsrelatingtotheregulation,supervisionandoversightofcrypto-assetactivitiesandsandglobalstablecoinGSCarrangementsAdditionalclarityandguidancewasprovidedforgovernancearrangements,regulationoftradingplatformsandotherintermediaries,riskmanagement,redemptionandstabilisationmechanisms,andtheapplicabilityoftheFSBrecommendations.CommitteeonPaymentsandMarketInfrastructures(“CPMI”),InternationalOrganizationofSecuritiesCommissions(“IOSCO”),andtheFinancialActionTaskForce(“FATF”)alsoissuedguidanceonaddressingtherisksofstablecoinsand/orreviewedandclarifiedtheapplicabilityoftheirexistingstandardsandregulatoryframeworkstocryptoassetsandstablecoinsManyjurisdictionsproposedorrecentlyadopted,moregranularregulatoryrequirementstoaddresstherisksassociatedwithstablecoinactivities.3.7.MoredetailsoftherecentpolicydevelopmentsamonginternationalorganisationsandmajorjurisdictionsareatAnnex1andAnnex2,respectively.3.8.Notwithstandingvariationinprogressandapproachestakenbydifferentjurisdictionsinregulatingstablecoins,thereisaconvergenceofthemajoraspectsoftheirregulatoryremitandrequirements.Forexample,thereisgeneralconsensustobringatleastfiat-referencedstablecoins,i.e.stablecoinsthatpurporttomaintainastablevaluerelativetooneormorefiatcurrencies,intotheregulatoryperimeter.otrelyoniveitsvaluefromalgorithms.ulytheAnti-MoneyLaunderingandCounter-TerroristFinancing(Amendment)BillwasintroducedintotheLegislativeCounciltoamendtheAnti-MoneyLaunderingandCounter-TerroristFinancingOrdinance(“AMLO”).Amongotherthings,itwasproposedthatanSFClicencewillberequiredforthecarryingonofabusinessofngofafitandproperpersontestandotherregulatoryrequirements.VirtualassetwillbedefinedintheAMLOwithreferencetothekeyelementssetoutintheFATF’sdefinition.Moreover,giventherapiddevelopmentinthevirtualassetsector,theSecretaryforFinancialServicesandaparticularassetistobeconsideredavirtualassetundertheAMLO.TheLegislativeonJune3.rnmentissuedthePolicyStatementonDevelopmentofVirtualAssetsinHongKong”,settingoutthepolicystanceandapproachtowardsdevelopingavibrantsectorandecosystemforvirtualassetsinHongKong.ThePolicyStatementemphasisesthattheHKSARGovernmentandfinancialregulatorswillputinplacetimelyandnecessaryguardrailstomitigateactualandenvironmentforpromotingthesustainableandresponsibledevelopmentofthevirtualassetsectorinHongKong.4.Outcomeofthefeedbackreceived,ourresponse,andtheproposedayforward4.1.TheconsultationperiodoftheDiscussionPaperendedon31March2022.Wereceived58submissionsfromrespondentsofvariousbackground,includingmarketplayers,publicbodies,businessandprofessionalassociations,andindividuals.AlistoftherespondentsisatAnnex3.Asummaryofthemajorissuesraisedandourfeedbackissetoutinthissection.4.2.Insummarisingandrespondingtothefeedbackreceived,wealsosetouttheproposeddirectionoftravel,includingthekeyparametersthatweintendtoapplyinimplementingtheproposedregulatoryregime.Whenformulatingourproposals,wehavetakenintoaccountthefeedbackreceived,therecentinternationalregulatorydiscussions,practicesofothermajorjurisdictions,aswellasHongKong’soverallpolicystance.spectrumofcrypto-assetstructuresthataimtomaintainastablevalue,6wenotethatinternationalregulatorybodies,SSBsandmajorjurisdictionshavebeenaccordinghigherprioritytothosestablecoinsthathaveapotentialreachanduseacrossmultiplejurisdictions,includingasmeansofmakingpaymentsand/orstoreofvalue.Forexample,moremajorjurisdictionsaregivingprioritytoregulatingstablecoinsthatpurporttoreferencetooneormorefiatcurrenciesastheyaremorelikelytobeusedinpaymentsandhavelinkageswiththetraditionalfinancialsystem,therebycreatinghigherandmoreimminentmonetaryandfinancialstabilityrisksthanothertypesofstablecoinsandcrypto-assets.TheaboveassessmentissimilartothatoftheHKMA,assetoutintheDiscussionPaper.4.4.Assuch,theHKMAplanstoputinplaceanagileandrisk-basedregimeforwithstablecoinsthatpurporttoreferencetooneormorefiatcurrencies.Also,dueto6Forinstance,basedonthedefinitionoftheFSB,anycrypto-assetthatpurportstoreferenceitsvaluetoanykindofasset(beitfiatcurrencies,commodities,oranothertypeofcrypto-asset)couldtechnicallybecapturedunderthisdefinition.therapidmarketandinternationaldevelopments,andtakinganapproachsimilartosomeotherjurisdictions,theHKMAconsidersitimportantfortheregimetohavestablecoin-relatedfinancialactivitiesintotheregulatoryregimeasnecessaryinthefuture.Wewillconductfurtherconsultationtoseekmarketandpublicfeedbackaswedevelopmoregranularproposedregulatoryparametersandarrangements.ewofthefeedbackreceived4.5.ThroughtheDiscussionPaperfeedbackprocess,anumberofbroadthemes(i)broadconsensusthattheHKMAshouldregulatestablecoinswitharisk-basedandagileapproach,andtheregulatoryrequirementsshouldbeproportionatetotherisksposedbytheactivitiesundertakenbytheconcernedentities;(ii)broadagreementthattheHKMAshoulddrawreferencefromSSBs’workandadoptanapproachthatwouldbeconsistentwithglobalstandardsorpractices;(iii)variedopiniononwhethertheHKMAshouldimposealocalincorporationuirement(iv)avarietyofviewsontheregulatoryapproachonothercrypto-assetsandstablecoins,withsomecallingforfurtherregulationandothersarguingthatofcrypto-assetregulationbytheHKSARGovernmentandthefinancialregulators,andweremindfulofpossiblerisksofregulatoryarbitrage,vis-à-visothercrypto-assetsandtraditionalfinanceregimes(e.g.investmentfunds);and(v)questionsonthescopeoftheregulatoryregime,e.g.whatwouldconstitute“payment-relatedstablecoins”andrelevantactivities;andtheapplicabilityofinrespectofcarryingoutsimilarregulatedfinancialactivitiesinthetraditionalfinancespace.aryofrespondentsfeedbackbydiscussionquestionsromtheDiscussionPaperShouldweregulateactivitiesrelatingtoalltypesofstablecoinsorgiveprioritytothosepayment-relatedstablecoinsthatposehigherriskstothemonetaryand7FollowingthesequenceassetoutintheDiscussionPaperfinancialsystemswhileprovidingflexibilityintheregimetomakeadjustmentstothescopeofstablecoinsthatmaybesubjecttoregulationasneededinthefuture?Summaryoffeedbackbasedapproachtoprioritiseregulatoryeffortsregardingcrypto-assetsand/orstablecoinsthatposehigherfinancialandmonetaryimplicationsonHongKong.Inparticular,therewasbroadagreementthattheHKMAshouldregulatestablecoinsthathavethepotentialtobecomeawidelyacceptedmeansofpayment.Anumberofrespondentsopinedthattheproposedregimeshouldcoverallkindsofcrypto-assetsasastartTworespondentscommentedthattheHKMAshouldnotintroduceanyregulationforcrypto-assetsorstablecoinsatthismoment.4.7.Respondentsgenerallyagreedthatflexibilityshouldbebuiltintotheregimesothatregulatorscouldadapttomarketdevelopmentsandallowfortimelyadoptionofinternationallyagreedstandardsandpracticeswhereappropriate.RespondentsalsowithotherinternationalfinancialauthoritiesandSSBswithaviewtoimplementingaconsistentapproach.4.8.Somerespondentsmentionedthataclearandrobustregulatoryframeworkwouldberequiredtoensurealevelplayingfieldandhighlightedthattheregulationssetforthshouldworkintandemwiththeexistingrulesandregulationstopromoteinnovationandshouldnotstiflegrowthbyover-regulating.4.9.Afewrespondentswereoftheviewthatalgorithm-basedstablecoinsshouldalsobebroughtintotheregulatoryremitastheyweremorevulnerabletovaluemanipulationandmisuseformoney-launderingandfraud.4.10.Somerespondentssharedthatcentralbankdigitalcurrencies,certainclosed-looplimitedpurposestablecoins,settlementtokens,andtokeniseddepositsofAIsshouldbeexcludedfromtheregulatoryscope.Afewrespondentssuggestedthatthethatreferenceotherassets,suchascommodities,orstablecoinsthatwouldbeusedpredominantlyforpaymentincrypto-assettransactions.4.11.Somerespondentssoughtclarificationonthedefinitionof“payment-relatedlegalcertaintyandclarity.Theynoteddifficultyindifferentiatingbetween“payment-coinswithsomeaskingwhethertherewouldbeathresholdforacrypto-asset/stablecointobeconsideredasawidelyacceptedmeansofpayment.Respondentsalsocitedchallengesindefiningtheregulatoryscopebyusepurposeorscale.4.12.RespondentsrecommendedthattheHKMAshouldensureregulatoryconsistencywithinternationalstandardsandpracticeswhenconsideringthescopeandrequirementofanyfutureregulationsonstablecoinstoenablecross-bordercollaborationacrossjurisdictionsandavoidregulatoryarbitrage.4.13.Havingconsideredtheresponsesreceivedaswellasthelatestinternationalrecommendations,theHKMAwilltakearisk-basedapproachbygivingprioritytoregulatingstablecoinsthatpurporttoreferencetooneormorefiatcurrencies.Thewiththetraditionalfinancialsystem,therebycreatinghigherandmoreimminentmonetaryandfinancialstabilityrisksthanothertypesofstablecoinsorcrypto-assets.Itshouldbenotedthatthefocuswouldbeonthepurportedreferenceofastablecoinirrespectiveoftheunderlyingstabilisationmechanismofthatstablecoin.Hence,astablecointhatpurportstoreferencetofiatcurrenciesthroughalgorithmsorarbitrageormorefiatcurrencieswouldbescopedinregardlessofwhetherthecoinispredominatelyusedforretail,wholesale,orcrypto-assettransactions.4.14.Inaddition,duetorapidmarketandinternationaldevelopmentsaswellaspossible,innovativewaysofusingstablecoinsinamannerthatmaynotbepossibleintraditionalfinance,itisimportantfortheregimetobeagilesothatitcouldaddress,inatimelymanner,monetaryandfinancialstabilityrisksthatmaybeposedbynewstablecoinstructuresand/orusecases.Havingconsideredthefeedbackreceivedandinternationalpractices,theHKMAproposesthattheregimeshouldhaveappropriateflexibilitytoenabletheauthoritytodeclareothertypesofstablecoinstructures(i.e.apartfromthosethatpurporttoreferencetofiatcurrencies)tobesubjecttotheregulatoryregimeinthefuture.Inthisregard,theHKMAseesmeritsinprovidingspectofwhattheauthoritywouldhaveregardtoinconsideringwhichparticularstructureshouldbedeclaredasastablecoinsubjecttoregulation.thatmightbeexcludedfromtheproposedscopeofregulation,assummarisedinrangementsfromthedefinitionofstablecoinsforcertainreasons(e.g.alreadybeingsubjecttoanotherfinancialregulatoryregime,orusedwithinawell-confinedenvironmentoutsidethereachofthegeneralpublic).TheHKMAwillconductfurtheranalysisandadditionalconsultationwithrespecttothescopeofexclusionsaswellastherelevantapproach.Amongotherthings,deposit-takingactivityiscurrentlyregulatedundertheBankingOrdinanceinHongKong,andtheHKMAwillconsidertheappropriateregulatorytreatmentfortokeniseddepositsinHongKong.4.16.Asregardstheregulationofothercrypto-assets,theHKMAwillcontinuetocoordinatewithotherstakeholdersintheHKSARGovernment,participateinrelevantinternationaldiscussions,andtakeintoaccountanyapplicableinte