Hong Kong Legislative Council member Yiu Tak-ken: Stablecoins have no speculative opportunities, and the regulations will be based on the practices of the US, Japan, Singapore, and the EU

ChainCatcher news, according to the Daily Economic News, Hong Kong Legislative Council member Chiu Tat-kan stated in an exclusive interview that the core feature of fiat-backed stablecoins is that they must be 100% backed by highly liquid monetary assets as reserves. The main function of fiat-backed stablecoins currently remains international payments, with no opportunity for speculation whatsoever.

During the formulation of the "Stablecoin Regulation," references were made to the United States, Japan, and the EU's MiCA (Markets in Crypto-Assets Regulation), as well as Singapore's Payment Services Act (PSA). The legislation considers international circulation and demand, adhering to international and national standards.

In addition, Chiu Tat-kan also stated that Hong Kong's stablecoins should not compete for the market of existing products but should explore new markets.