According to Odaily, Hong Kong's Financial Services and the Treasury Bureau (FSTB) has announced that following the implementation of the licensing regime for virtual asset service providers in June last year, the FSTB and the Hong Kong Monetary Authority (HKMA) consulted the public on the proposed regulatory framework for stablecoin issuers at the end of last year. They are now preparing to publish a summary of the consultation to draft legislation for the Legislative Council's review. Given the significant role of fiat-backed stablecoins in the Web3 and virtual asset ecosystem, and the increasing integration between traditional financial systems and the virtual asset market, the government sees the need to establish a regulatory framework for fiat-backed stablecoin issuers. The main requirements include reserve management and stability mechanisms, ensuring that issuers fully back stablecoins with high-quality and highly liquid reserve assets, redemption requirements, and governance, knowledge, and experience standards. To protect stablecoin users, it is proposed that only licensed fiat-backed stablecoin issuers, banks, licensed corporations, and licensed virtual asset trading platforms can sell or actively promote stablecoin services to the public in Hong Kong. The proposed regulatory framework will also include transitional arrangements for existing stablecoin issuers.