On August 19, 2025, the Digital Asset Anti-Money Laundering Committee (DAAMC) was established in Hong Kong to enhance compliance standards for stablecoin issuers.
Establishment of the DAAMC
The DAAMC was established with support from the Hong Kong Virtual Asset Industry Association, SlowMist, and Yuanbi. The committee's primary goal is to implement regulatory frameworks set by the Hong Kong Monetary Authority, focusing on Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) in the digital asset space. A key aspect of the initiative is to foster industry collaboration, reflecting a commitment to maintaining high regulatory standards.
Comparison with EU MiCA Regulation
The establishment of the DAAMC in Hong Kong parallels the EU's MiCA regulations, highlighting the global trend towards enhanced regulation of digital assets. This move is aimed at creating a safe and reliable platform for the virtual finance industry, facilitating greater institutional engagement.
Prospects for the Digital Asset Market
Research from Coincu suggests that tightening compliance regulations could lead to improved market stability in digital assets. Julia Leung, CEO of the Securities and Futures Commission, emphasized the need to balance industry growth with investor protection. This initiative is expected to foster greater trust among institutional investors and broaden market participation.
With the establishment of the Digital Asset Anti-Money Laundering Committee, Hong Kong asserts its position on the global financial technology stage. Strengthening AML and CFT compliance may play a crucial role in increasing trust and stability in the market.
