PANews reported on December 18 that according to a Hong Kong government news release, Hong Kong Financial Services and Treasury Secretary Paul Chan proposed a second reading of the Stablecoin Bill at the Legislative Council meeting today and hoped that it would be passed as soon as possible. It is reported that the regulatory system focuses on the following three items:
(1) The licensee must maintain a robust reserve stabilization mechanism to ensure that the stablecoin reserve assets are composed of high-quality and highly liquid assets, with a total value at all times at least equal to the denomination of the fiat stablecoin in circulation, and are properly segregated and kept;
(ii) Stablecoin holders should have the right to redeem stablecoins at par from the issuer, and redemption requests must be processed without unreasonable fees and within a reasonable time;
(iii) A series of requirements on combating money laundering, risk management, disclosure, auditing and proper personnel selection need to be specified.
