Golden Finance reported that Hong Kong Legislative Council member Wu Jiezhuang released a message on X that the Deputy Secretary for Financial Services and the Treasury, Chan Ho-lim, released a briefing and explained the latest situation of the "Proposed Stablecoin Issuer Regulatory System": In view of the important role of stablecoins in the Web3 and virtual asset ecosystems, and the increasingly close connection between the traditional financial system and the virtual asset market, the government believes that it is necessary to establish a regulatory system for issuers of legal currency stablecoins, and to regulate legal currency stablecoin issuers in a risk-based and flexible manner. In addition to the existing regulatory system for virtual asset trading platforms, the establishment of a licensing system for legal currency stablecoin issuers will strengthen Hong Kong's virtual asset regulatory framework, align with international standards, and effectively mitigate the risks posed to financial stability by activities related to the issuance of legal currency stablecoins. The policy objectives of the proposed regulatory framework include: * Formulate preventive measures to address the potential risks posed by fiat stablecoins to monetary and financial stability; * Provide protection for users of fiat stablecoins; * Formulate a regulatory system for fiat stablecoin issuers that is in line with international regulatory recommendations to maintain Hong Kong's status as an international financial center; * Provide a clear legal and regulatory environment to promote the sustainable and responsible development of Hong Kong's virtual asset ecosystem. He personally praised the progress of the SAR government and hoped that Hong Kong would improve the development and regulatory framework of Web3 and virtual assets as soon as possible.
