Hong Kong Monetary Authority (HKMA)

The Hong Kong Monetary Authority (HKMA) functions as Hong Kong's de facto central bank, responsible for maintaining monetary and financial stability. Recent news highlights its role in regulating stablecoins, managing the Exchange Fund, and coordinating with international bodies. The HKMA is currently newsworthy due to its cautious approach to stablecoin regulation, granting the first licenses to HSBC and a Standard Chartered-led joint venture after the implementation of Hong Kong's Stablecoin Ordinance. Despite this progress, some industry figures are urging the HKMA to loosen restrictions further. The HKMA also maintains Hong Kong's base rate in line with the US Federal Reserve. Furthermore, the HKMA signed an agreement with Shanghai to enhance digital trade finance and cross-border data links, and is managing the Exchange Fund, which saw record earnings last year. The agency is also advising government entities on cybersecurity matters, such as the use of AI agents.