Hong Kong's "Stablecoin Regulation" officially comes into effect: Reserve assets must fully cover the circulating value

ChainCatcher news, the Hong Kong "Stablecoin Regulation" has officially come into effect, establishing a licensing system for stablecoin issuers and improving Hong Kong's regulatory framework for virtual asset activities. Yang Debin, president of the Greater Bay Area International Information Technology Association, stated that the development of stablecoins internationally has now reached a certain scale. The introduction of the "Stablecoin Regulation" in Hong Kong at this time reflects a timely advancement in regulation. In line with international standards, Hong Kong aims to align its stablecoin regulations with those of other countries and regions globally.

According to the Hong Kong "Stablecoin Regulation," license holders must ensure that the market value of the reserve assets for the designated stablecoins they issue is always not less than the face value of those stablecoins that have not yet been redeemed and are in circulation. License holders should consider the risk status of the reserve assets and ensure appropriate over-collateralization to cover market risks. (21st Century Business Herald)