ChainCatcher news, the Hong Kong Treasury Department and the Hong Kong Monetary Authority jointly issued a consultation summary on the legislative proposals for implementing the regulatory system for issuers of fiat stablecoins in Hong Kong.

It mentioned that considering that the field of stablecoins is still in its infancy, a considerable number of respondents agreed to the proposal to enact new legislation to implement the regulatory system for issuers of fiat stablecoins, as well as to exclude the issuance of fiat stablecoins from the regulatory system for securities and stored value payment instruments. The Hong Kong Monetary Authority will continue to cooperate with other regulators to jointly build a consistent virtual asset regulatory framework in Hong Kong to avoid regulatory arbitrage. Most respondents support the requirement that the total value of the reserve assets of fiat stablecoins must maintain full reserves at all times, and agree that this is a core element of the stablecoin stability mechanism.