Hong Kong Considers Stablecoin Issuer Regulations

According to PANews, a new bill regulating stablecoin issuers has been submitted to Hong Kong's Legislative Council for review. This follows the introduction of a licensing system for virtual asset trading platforms. Hong Kong legislator Ng Kit Chuang emphasized that stablecoins are a fundamental part of virtual asset infrastructure, serving not only as investment tools but also facilitating cross-border payments. Ng noted that the current regulatory proposal suggests issuers should deposit reserve assets with Hong Kong banks, which may not align with local regulations of certain coin issuers. Efforts are underway to communicate with the government and industry stakeholders to find a compromise, such as establishing mutual recognition contracts or notes between jurisdictions. This approach aims to ensure that assets do not need to be physically held in Hong Kong while still providing protection for Hong Kong citizens.