According to ChainCatcher, the draft regulations for supervising stablecoin issuers have been submitted to the Hong Kong Legislative Council for review. Legislative Council member Wu Jiezhuang pointed out that stablecoins are an important tool for virtual assets, which can be used not only for investment but also for cross-border payments.
Currently, it is suggested that issuers entrust their reserve assets to Hong Kong banks, but this may not comply with the local regulations of individual currency traders. Wu Jiezhuang stated that he would communicate with the government and the industry to seek a compromise, such as establishing contracts or mutual recognition of notes between the two places, without the need for assets to exist in Hong Kong.