TechFlow reported that on December 18, according to a Hong Kong government news release, Hong Kong Financial Services and the Treasury Secretary Paul Chan proposed the second reading of the Stablecoin Bill at the Legislative Council meeting today and hoped that it would be passed as soon as possible. It is reported that the regulatory system focuses on the following three items:

(i) Licensees must maintain a robust reserve stability mechanism to ensure that stablecoin reserve assets are composed of high-quality and highly liquid assets, with a total value at all times at least equal to the face value of the circulating legal currency stablecoins, and are properly separated and kept;

(ii) Stablecoin holders should have the right to redeem stablecoins at face value from the issuer, and redemption requests must be processed without unreasonable fees and within a reasonable time;

(iii) A series of requirements for combating money laundering, risk management, disclosure requirements, auditing and appropriate personnel should be specified.