Analysis: The Hong Kong Monetary Authority may conditionally allow certain stablecoin cases to engage in currency mismatch

ChainCatcher news, according to the Mobile Payment Network, the Hong Kong Monetary Authority may conditionally allow certain stablecoin cases to conduct currency mismatches. Licensed institutions must demonstrate that they always possess the ability to maintain full redemption capability, including under extreme and market pressure conditions, while ensuring that any currency mismatch measures do not transfer risk to stablecoin holders.

Additionally, licensed institutions must discuss and obtain approval from the Hong Kong Monetary Authority before proposing plans regarding the composition and proportion of reserve assets, as well as risk management measures.

Furthermore, the Hong Kong Monetary Authority does not prohibit licensed institutions from hiring distributors outside of Hong Kong. However, licensed institutions should conduct due diligence and risk assessments before hiring, continuously monitor throughout the process, and adhere to relevant third-party risk management measures. Licensed institutions should also pay special attention to comply with local laws and regulations.