The Hong Kong Monetary Authority's regulations on stablecoins are actually quite flexible; they do not adopt a one-size-fits-all approach of outright prohibition. In simple terms: you can play with stablecoins, but you must follow my rules, and the most important thing is that you cannot take the people's money!

Firstly, the most critical bottom line is: for every stablecoin you issue, you must have enough funds backing it. For example, if you say one coin is worth one dollar, you must really have one dollar deposited in the bank; you can't play a shell game. Even in extreme situations like a financial crisis, you must ensure that people can exchange their money back at any time. It's like running a convenience store; you can't have customers come in with money to buy things and have your shelves completely empty, right?

There are also specific rules about how to store the money. You cannot take all the money you collect and invest it in stocks or foreign exchange; what if you incur losses? You must report in advance what financial products you plan to buy and in what proportions, and you can only proceed after getting the green light from the Monetary Authority. It's like a primary school student asking their parents before buying a toy; you can't just buy whatever you want.

There is also an interesting regulation: although local companies in Hong Kong must follow the rules, if you find foreign agents to help you sell coins, the Monetary Authority will not stop you. However, you must ensure that these foreign partners are reliable and not scammers. It's like checking the store ratings when you're looking for a purchasing agent on Taobao, right? Moreover, you must comply with local laws; you can't assume that just because you are approved in Hong Kong, you can operate freely around the world.

In fact, these regulations boil down to one meaning: to allow new developments while managing risks. Many countries are currently working on stablecoin regulation, and Hong Kong's approach can be considered both strict and reasonable. The most practical takeaway for the public is that in the future, when buying stablecoins approved by Hong Kong, at least you won't have to worry about the coins you bought in the morning turning into worthless paper by the afternoon!