The Legislative Council of Hong Kong's relevant bills committee held its first review of the "Stablecoin Ordinance Draft" yesterday.

According to reports from Hong Kong's Ta Kung Pao, the Legislative Council's relevant bills committee in Hong Kong held its first review of the "Stablecoin Regulation Draft" yesterday, which is expected to pass and be officially implemented in the coming months. The Deputy Secretary for Financial Services and the Treasury, He Zhaokang, stated that regardless of whether stablecoins are issued in Hong Kong or abroad and pegged to the Hong Kong dollar, they must obtain relevant licenses. Licensed institutions are required to maintain a robust reserve management mechanism to ensure that the reserve assets of the stablecoins consist of high-quality and highly liquid assets, with a total value that must equal or exceed the total face value of the fiat stablecoins in circulation at any time. Additionally, proper separation and custody of the reserve assets are required. He Hanjie, Assistant General Manager (Monetary Management) of the Hong Kong Monetary Authority, further noted that licensed companies already participating in the sandbox trials for stored value payment tools are testing cross-border payment functions, but stablecoins are still in the testing phase, and the Monetary Authority hopes to accelerate related progress.