According to PANews, Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, has introduced the second reading of the 'Stablecoin Regulation Bill' in the Legislative Council. The government aims for swift passage of the bill, which outlines a regulatory framework focusing on three key areas.
Firstly, the bill mandates that licensed entities maintain a robust reserve stabilization mechanism. This requires that the reserve assets backing stablecoins consist of high-quality, highly liquid assets. The total value of these assets must always be at least equal to the face value of the stablecoins in circulation. Additionally, these assets must be properly segregated and safeguarded.
Secondly, the bill ensures that stablecoin holders have the right to redeem their stablecoins from issuers at face value. Redemption requests must be processed without unreasonable fees and within a reasonable timeframe.
Lastly, the proposed legislation specifies a range of requirements aimed at combating money laundering, managing risks, and ensuring transparency. These include disclosure obligations, audit requirements, and criteria for selecting suitable personnel.
WenJun
