The Secretary for Justice of Hong Kong: Issuance of fiat stablecoins in Hong Kong must apply for a license from the Financial Commissioner.

According to a report by Jinse Finance, the Secretary for Justice of the Hong Kong Special Administrative Region, Paul Lam, stated that in recent years, digital assets “stablecoins” pegged to fiat currencies have rapidly emerged. Anyone issuing fiat stablecoins in Hong Kong or issuing fiat stablecoins claiming to be pegged to the value of the Hong Kong dollar, either in Hong Kong or outside, must apply for a license from the Financial Commissioner. Relevant parties must comply with regulations regarding reserve asset management and redemption, including properly segregating client assets and maintaining a sound stability mechanism, among other requirements.

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