Hong Kong Treasury Department, Hong Kong Monetary Authority: will continue to cooperate with other regulatory agencies to jointly build a consistent virtual asset regulatory framework in Hong Kong

PANews reported on July 17th that the Hong Kong Treasury and the Hong Kong Monetary Authority have jointly issued a consultation summary on the legislative proposal to implement a regulatory regime for the issuance of Fiat CurrencyStable Coin in Hong Kong. It mentioned that, considering that the category of Stable Coin is still in its infancy, a significant majority of respondents agreed to enact new legislation to implement a regulatory regime for the issuance of Fiat CurrencyStable Coin, as well as the proposal to exclude the issuance of Fiat CurrencyStable Coin from the regulatory regime for securities and stored value payment instruments. The Hong Kong Monetary Authority will continue to collaborate with other regulatory authorities to jointly establish a consistent virtual asset regulatory framework in Hong Kong to avoid regulatory Arbitrage. The majority of respondents support the requirement that the total value of reserves for Fiat CurrencyStable Coin must be maintained at all times and agree that this is a core element supporting the stability mechanism of Stable Coin.