The Hong Kong Legislative Council reviewed a bill regarding the regulation of stablecoin issuers this week. Legislative Council member Wu Jiezhuang stated that stablecoins, as the infrastructure of virtual assets, are not only used for investment but also for cross-border payments, serving as an important tool for citizens to participate in virtual assets. However, the current regulatory proposal requires issuers to have their reserve assets held by Hong Kong banks, which may not comply with local regulations of some cryptocurrency businesses. Therefore, the government and the industry will strengthen communication to seek a compromise solution, such as mutual recognition of contracts or notes between the two places, to avoid the necessity of storing assets in Hong Kong. 🔍💼