According to PANews, Hong Kong Financial Services and the Treasury Bureau Director Paul Chan proposed a second reading (Stablecoin Bill) at the Legislative Council meeting.
The key points of the regulatory system include: licensees must maintain a sound reserve mechanism to ensure that stablecoin reserve assets are composed of high-quality, highly liquid assets, with a total value at least equal to the face value of fiat stablecoins in circulation, and are properly separated and kept.
Stablecoin holders should have the right to redeem stablecoins at par, and redemption requests should be processed within a reasonable time and without unreasonable fees.
The regulations will also need to set out requirements for combating money laundering, risk management, disclosure requirements, auditing and fit and proper personnel.