PANews December 21 news, according to Sing Tao Network reports, following the introduction of a licensing system for virtual asset trading platforms, the regulatory draft for stablecoin issuers was submitted to the Hong Kong Legislative Council for review this week. Hong Kong Legislative Council member Wu Jiezhuang 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 is noted that the current regulatory direction suggests that issuers must deposit reserve assets with Hong Kong banks, which may not comply with local regulations of individual coin merchants. Efforts will be made to communicate with the government and industry to seek a compromise solution, such as establishing contracts or notes between the two places for mutual recognition, while not requiring assets to be held in Hong Kong, thus also providing protection for Hong Kong citizens.
