CoinVoice has learned that the Hong Kong (Stablecoin Regulation) has officially come into effect, establishing a licensing system for stablecoin issuers and improving Hong Kong's regulatory framework for virtual asset activities. Yang Defen, president of the Greater Bay Area International Information Technology Association, stated that the development of stablecoins internationally has now reached a certain scale. The launch of the (Stablecoin Regulation) in Hong Kong at this time reflects an up-to-date approach in regulation. In alignment with international standards, Hong Kong aims to align its regulations on stablecoins with the standards of other countries and regions around the world.
According to the Hong Kong (Stablecoin Regulation), licensed persons must ensure that the market value of the reserve assets for the designated stablecoins they issue is always not less than the par value of those stablecoins that have not yet been redeemed and are in circulation. Licensees should consider the risk status of the reserve assets and ensure adequate over-collateralization to cover market risks. (21 Finance)
[Original Link]