Hong Kong's heavyweight: "Stablecoin Regulations" officially become law.

The Hong Kong Special Administrative Region Government published the "Stablecoin Regulations" in the official gazette on May 30, marking the official enactment of the law. Earlier on May 21, the Hong Kong Legislative Council officially passed the draft of the regulation, establishing a licensing system for issuers of "fiat-backed stablecoins" in Hong Kong. The regulation aims to promote financial innovation while maintaining financial stability, signaling an important step for Hong Kong in the field of digital assets. It is understood that after the implementation of the "Stablecoin Regulations", anyone issuing fiat-backed stablecoins in Hong Kong, or issuing fiat-backed stablecoins claiming to be pegged to the value of the Hong Kong dollar in Hong Kong or abroad, must apply for a license from the Hong Kong Commissioner of Financial Management. Relevant parties must comply with regulations on reserve asset management and redemption, including proper segregation of customer assets, maintaining a sound stabilization mechanism, and reasonable handling of redemption requests from stablecoin holders. Relevant parties must also comply with a series of requirements related to anti-money laundering, counter-terrorism financing, risk management, disclosure regulations, auditing, and appropriate personnel selection. The Hong Kong Monetary Authority emphasizes that the licensing system will provide better protection for the public and investors. The regulation only allows designated licensed institutions to sell fiat-backed stablecoins in Hong Kong, and only fiat-backed stablecoins issued by licensed issuers can be sold to retail investors. Additionally, to prevent fraud, only advertisements related to licensed fiat-backed stablecoin issuers will be allowed.