The Hong Kong Treasury announced three key regulatory focuses for stablecoins: the total value of reserve assets must be at least equal to the face value of the circulating fiat stablecoins.

The Hong Kong Financial Services and the Treasury Bureau announced three key regulatory focuses on stablecoins: the total value of reserve assets must be at least equal to the amount of circulating fiat stablecoins. The Secretary for Financial Services and the Treasury, Christopher Hui, announced that anyone engaging in regulated stablecoin activities must obtain a license, including: conducting the issuance of fiat stablecoins in Hong Kong, conducting the issuance of Hong Kong dollar stablecoins, or actively promoting the issuance of their fiat stablecoins to the public in Hong Kong. The key focuses of the regulatory system include the following three points: (1) In terms of reserves, licensed entities must maintain a robust stability mechanism to ensure that the reserve assets of the stablecoin consist of high-quality and highly liquid assets, with a total value at all times at least equal to the circulating fiat stablecoin denomination, and properly segregated and safeguarded; (2) To ensure that stablecoin holders are properly protected, holders should have the right to redeem stablecoins at face value from the issuer. Redemption requests must be processed without unreasonable fees and within a reasonable time; and (3) A series of requirements related to anti-money laundering, risk management, disclosure, auditing, and appropriate candidates.