Hong Kong Secretary for Justice: Issuance of a Hong Kong Dollar-pegged Stablecoin in Hong Kong or Outside Hong Kong Requires Licensing

BlockBeats News, October 29th. Rimsky Lau, Secretary for Justice of the Hong Kong Special Administrative Region Government, stated that virtual asset trading is becoming increasingly active, with most trading conducted through virtual asset trading platforms. Many investors will deposit their virtual assets on the exchange to earn returns. In recent years, digital assets pegged to fiat currencies, known as "stablecoins," have risen rapidly. Anyone wishing to issue fiat currency stablecoins in Hong Kong or issue stablecoins claiming to be anchored to the Hong Kong dollar's value in or outside Hong Kong must apply for a license from the Commissioner of Financial Management.

Relevant parties must comply with regulations regarding reserve asset management, redemption, etc., including proper segregation of customer assets and maintaining a sound stabilization mechanism.