ChainCatcher message, the draft regulations for the supervision of stablecoin issuers have been submitted to the Hong Kong Legislative Council for review this week. Legislative Council member and Chairman of the Web3 and Virtual Assets Development Committee, Ng Kit Cheung, pointed out that stablecoins are foundational infrastructure of virtual assets, which can be used not only for investment but also for cross-border payments. They are an important tool for citizens to participate in virtual assets. However, the current regulatory direction suggests that issuers should entrust their reserve assets to Hong Kong banks, which may not comply with the local regulations of individual coin merchants. There will be intensified communication with the government and industry to seek a compromise solution, such as drafting contracts or notes for mutual recognition between the two places, while also not requiring the assets to exist in Hong Kong.