Hong Kong Group Launches Stablecoin AML Compliance Initiative with Industry Leaders

Circle Coin Innovation Technology, HashKey Group, Beosin, and SlowMist have jointly announced the formation of the Digital Asset Anti-Money Laundering Professional Committee (DAAMC), an industry-led non-profit initiative aimed at promoting the development of high-standard AML/CFT practices in the digital asset sector, particularly for stablecoins [1]. The initiative is supported by the Hong Kong Virtual Assets Industry Association (HKVAIA) and brings together key players in digital finance, blockchain security, and compliance to drive the compliance and sustainable development of stablecoins in Hong Kong [1].

The committee focuses on creating and promoting AML/CFT standards that align with the regulatory framework set by the Hong Kong Monetary Authority (HKMA) for licensed stablecoin issuers. Emphasis is placed on on-chain identity verification and other advanced compliance technologies to ensure that stablecoins issued within the region can be adopted widely while maintaining strong risk controls [1]. This initiative is also in line with Hong Kong’s broader digital finance strategy, including the implementation of the Stablecoins Ordinance and the Digital Asset Policy Statement 2.0 [1].

DAAMC plans to release two technical reports on AML practices for stablecoins to offer guidance to the industry. In addition, the council is set to host a seminar at the end of the month to facilitate discussions among experts on stablecoin compliance and innovation strategies [1]. These steps underscore DAAMC’s commitment to encouraging regulatory dialogue, professional education, and industry collaboration in the field of digital asset compliance [1].

The committee is open to a broad range of stakeholders, including regulated financial institutions such as banks and Virtual Asset Service Providers (VASPs), as well as audit and legal firms. By engaging institutional and associate members, DAAMC aims to foster a collaborative environment for shaping the future of digital asset compliance and establishing a benchmark for financial integrity in Hong Kong’s evolving stablecoin ecosystem [1].

Source: [1] Digital Asset Anti-Money Laundering Council (DAAMC) Launched with Support from the Hong Kong Virtual Assets Industry Association (HKVAIA) to Strengthen Stablecoin Compliance and Financial Integrity (https://www.prnewswire.com/news-releases/digital-asset-anti-money-laundering-council-daamc-launched-with-support-from-the-hong-kong-virtual-assets-industry-association-hkvaia-to-strengthen-stablecoin-compliance-and-financial-integrity-302532900.html)