Hong Kong Stablecoin Audit Rules Caution Urged by AFRC Chief

Hong Kong stablecoin audit rules should not be rushed or risk “killing the industry,” according to David Sun Tak-kei, head of the Accounting and Financial Reporting Council. Speaking to Sing Tao Daily, Sun said detailed requirements for audits could still be one to three years away. Under the new Stablecoin Ordinance, issuers must undergo annual independent audits, but Sun stressed the AFRC is likely to take only an indirect role and that regulation should mature with the market. He compared the approach to Hong Kong’s cautious rollout of digital bank licences, noting that no stablecoin issuer has yet been licensed. Sun also disclosed that the AFRC’s probe into PwC’s auditing of Evergrande is broader than in mainland China and may take longer to conclude.