Hong Kong Explores Stablecoin Issuer Regulation Framework

According to Odaily, the Hong Kong Legislative Council's Subcommittee on Web3 and Virtual Asset Development convened a meeting recently. During the session, Zhang Manli, the Deputy Secretary for Innovation, Technology and Industry of Hong Kong, highlighted the government's ongoing efforts to introduce a regulatory framework for stablecoin issuers. This initiative is part of a broader strategy to enhance the region's position as a hub for stablecoin and virtual asset trading. In addition to launching an index to track virtual currencies, the Hong Kong Special Administrative Region (HKSAR) government is actively researching legislative proposals aimed at regulating stablecoin issuers. Zhang indicated that the framework is expected to be presented to the Legislative Council later this year. The proposal aims to ensure that fluctuations in stablecoin prices are accurately reflected in the index, thereby supporting the development of a robust trading center for stablecoins and virtual assets in Hong Kong. Zhang also mentioned plans to collaborate further with the Financial Services and the Treasury Bureau, as well as the Hong Kong Monetary Authority, to refine the regulatory approach. This collaboration is crucial to align the regulatory framework with the dynamic nature of the virtual asset market, ensuring that Hong Kong remains at the forefront of financial innovation and stability in the digital currency sector.