PANews reported on December 21 that according to Sing Tao Daily, following the introduction of a licensing system for virtual asset trading platforms, the draft ordinance to regulate stablecoin issuers has been submitted to the Hong Kong Legislative Council for deliberation this week. Hong Kong Legislative Council member Wu Jiezhuang pointed out that stablecoins are part of the infrastructure of virtual assets. In addition to being used for investment, they can also be used for cross-border payments and are an important tool for citizens to participate in virtual assets. However, it is noted that the current regulatory direction recommends that issuers entrust their reserve assets to Hong Kong banks for safekeeping, which may not comply with the local laws and regulations of individual currency traders. We will step up communication with the government and the industry to seek a compromise solution, such as formulating contracts or bills for mutual recognition between the two places, while not requiring assets to be in Hong Kong, and providing protection for Hong Kong citizens.