According to PANews, the Hong Kong Treasury Department and the Hong Kong Monetary Authority jointly issued a consultation summary, proposing to implement a regulatory system for issuers of fiat stablecoins in Hong Kong. Most respondents agreed to enact new laws and exclude the issuance of fiat stablecoins from the regulatory system for securities and stored value payment instruments.
The Hong Kong Monetary Authority will work with other regulators to build a consistent regulatory framework for virtual assets to avoid regulatory arbitrage. Most respondents support the requirement that the total value of the reserve assets of the fiat stablecoin must be fully reserved at all times, believing that this is the core element supporting the stability mechanism of the stablecoin.
