The Hong Kong Legislative Council is reviewing a draft regulation on the supervision of stablecoin issuers this week. Legislative Council member Wu Jiezhuang stated that stablecoins, as the infrastructure for virtual assets, are not only used for investment but also for cross-border payments, making them an important tool for citizens to participate in virtual assets. However, the current regulatory proposal requires issuers to have their reserve assets custodied by Hong Kong banks, which may not comply with the local regulations of some cryptocurrency businesses. To address this, the government and the industry will strengthen communication to seek a compromise, such as mutual recognition of contracts or bills between the two regions, to avoid the necessity of storing assets in Hong Kong. 🔍💼