The Secretary for Financial Services and the Treasury, Christopher Hui, announced that anyone engaging in regulated stablecoin activities must obtain a license, including: issuing fiat stablecoins in Hong Kong, issuing Hong Kong dollar stablecoins, or actively promoting the issuance of their fiat stablecoins to the public in Hong Kong. The regulatory framework focuses on the following three points:
1. In terms of reserves, licensees must maintain a robust stabilization mechanism to ensure that the reserve assets of stablecoins consist of high-quality and highly liquid assets, with a total value that is at least equal to the face value of the circulating fiat stablecoins at all times, and properly segregated and safeguarded.
2. To ensure that stablecoin holders are adequately protected, holders should have the right to redeem stablecoins from the issuer at face value, with redemption requests processed without unreasonable fees and within a reasonable timeframe.
3. A series of requirements concerning anti-money laundering, risk management, disclosure and auditing, and appropriate candidates.