The Hong Kong "Stablecoin Bill" officially takes effect

According to ChainCatcher news, the "Stablecoin Regulation" officially came into effect on August 1 in Hong Kong, as reported by CCTV News. This establishes a licensing system for fiat stablecoin issuers in Hong Kong, improving the regulatory framework for virtual asset activities in Hong Kong to maintain financial stability while promoting financial innovation.

After the implementation of the "Stablecoin Regulation," anyone who issues fiat stablecoins in Hong Kong during business operations, or issues fiat stablecoins claiming to be pegged to the value of the Hong Kong dollar in or outside of Hong Kong, must apply for a license from the Financial Management Commissioner. Relevant parties must comply with regulations regarding reserve asset management and redemption, including properly segregating customer assets, maintaining a sound stabilization mechanism, and handling redemption requests from stablecoin holders at face value under reasonable conditions.

Relevant parties must also meet a series of requirements related to anti-money laundering and counter-terrorism financing, risk management, disclosure regulations, auditing, and appropriate candidates. The Financial Management Commissioner will consult further on the detailed regulatory requirements of the system in due course.