Hong Kong Government Enforces Licensing for Stablecoin Issuance

According to BlockBeats, Hong Kong's Secretary for Justice, Lam Ting-kwok, has highlighted the increasing activity in virtual asset trading, with most transactions occurring through virtual asset platforms. Many investors are placing their virtual assets on these platforms to earn returns. In recent years, stablecoins, digital assets pegged to fiat currencies, have rapidly emerged. Lam emphasized that anyone issuing fiat-backed stablecoins in Hong Kong or claiming to peg them to the Hong Kong dollar must obtain a license from the Financial Management Commissioner. Issuers are required to comply with regulations concerning reserve asset management and redemption, including proper segregation of client assets and maintaining a robust stabilization mechanism.