Techub News reports that following the introduction of a licensing system for virtual asset trading platforms, a draft regulation for the oversight of stablecoin issuers has been submitted to the Hong Kong Legislative Council for review this week. Legislative Council member Wu Jietzhuang pointed out that stablecoins are part of the infrastructure for virtual assets, which can be used not only for investment but also for cross-border payments, making them an important tool for citizens to participate in virtual assets. However, it has been noted that the current regulatory direction suggests that issuers should deposit their reserve assets with Hong Kong banks, which may not comply with the local regulations of individual cryptocurrency businesses. There will be intensified communication with the government and the industry to seek a compromise, such as formulating contracts or notes that can be mutually recognized between the two regions, while also ensuring that the assets do not necessarily have to exist in Hong Kong, thus providing protection for Hong Kong citizens.