According to PANews, the Hong Kong Financial Services and the Treasury Bureau, along with the Hong Kong Monetary Authority, have jointly released a consultation summary on the legislative proposal for regulating fiat-backed stablecoin issuers in Hong Kong. The summary highlights that, given the nascent stage of stablecoins, a significant portion of respondents agreed on the need for new legislation to regulate fiat-backed stablecoin issuers. They also supported the proposal to exclude fiat-backed stablecoins from the regulatory frameworks governing securities and stored value payment instruments.

The Hong Kong Monetary Authority will continue to collaborate with other regulatory bodies to develop a consistent virtual asset regulatory framework in Hong Kong, aiming to prevent regulatory arbitrage. Most respondents endorsed the requirement that the total value of reserve assets for fiat-backed stablecoins must be fully backed at all times, recognizing this as a core element to support the stability mechanism of stablecoins.