Analysis: Hong Kong Monetary Authority may conditionally allow currency mismatches in some stablecoin cases

According to a report by Golden Finance, a mobile payment website analyzed that the Hong Kong Monetary Authority may conditionally allow currency mismatches in some stablecoin cases. Licensed institutions must demonstrate that they always have the ability to maintain full redemption, including under extreme and market pressure conditions, while ensuring that any currency mismatch measures do not transfer risk to stablecoin holders. In addition, licensed institutions need to discuss and obtain approval from the Hong Kong Monetary Authority before proposing plans for the composition and proportion of reserve assets, as well as risk management measures. In addition, 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 assessment before hiring, and continuously monitor the entire process, while complying with relevant third-party risk management measures. Licensed institutions should also pay special attention to complying with local laws and regulations.