New regulations for stablecoins in Hong Kong are here! Is your money going to be safer?
The Secretary for Financial Services and the Treasury, Xu Zhengyu, announced today: In the future, stablecoin issuers must keep their reserves in extremely safe, easily liquidated assets, and the funds must be sufficient for compensation!
In simple terms:
✅ Your stablecoins must be backed by real money
✅ These funds can only be invested in stable assets like government bonds and cash
✅ Want to run away? No way! You must ensure that they can be redeemed at any time
The Secretary also called on industry leaders: "Feel free to suggest any good ideas! The government is leading the way in trying out how legitimate stablecoins can work~"
(It seems Hong Kong wants to be the 'top student' in the crypto space!)
PS: Remember to check the license before buying stablecoins!
Do you think this regulation is protection or restraint? 👇 See you in the comments
