Guidelines for Auditing Stablecoins
In a recent statement, Sun Deji, who serves as the Chairman of the Hong Kong Institute of Accountants and Financial Reporting, indicated that the release of guidelines for auditing stablecoins by the government may take some time—specifically, he estimates a timeframe of one to three years. Sun expressed his concerns regarding the nascent stage of the stablecoin sector, suggesting that hasty development of detailed auditing standards could potentially stifle industry growth.
Regulatory Caution and Industry Enthusiasm
Addressing local media outlet Sing Tao Daily, he emphasized that while there is strong interest in the stablecoin space, the authorities should not rush into creating regulations. Sun confidently predicted that, within the next few years, a comprehensive framework for auditing and accounting related to stablecoins could emerge.
Following the introduction of the Stablecoin Ordinance on August 1, there has been considerable enthusiasm within the industry, with numerous firms already preparing to apply for licenses to issue stablecoins. However, the Hong Kong Monetary Authority has adopted a cautious stance, planning to grant only a limited number of licenses this year despite an influx of at least 77 firms expressing interest.
Investor Caution and Market Volatility
In light of this emerging sector, investor caution has been urged as risks associated with trading and the prevalence of fraud increase alongside the excitement brought about by the new Ordinance. The caution is further underscored by the volatility observed in stock prices of companies showing interest in stablecoin licenses, often spiking following major announcements.
Major Chinese enterprises, including the China National Petroleum Corporation and various banks such as the Industrial and Commercial Bank of China and the Bank of China, have shown particular interest in participating in this new market through Hong Kong’s stablecoin licensing pathway.
Future Prospects for the Stablecoin Industry
As the stablecoin industry evolves, Sun is optimistic that it will attract younger individuals into the fields of accounting and finance, paving the way for a new wave of professionals in these sectors.
