On July 19th, Hong Kong's Deputy Treasurer Chen Haolian stated at a meeting of the Web3 and Virtual Asset Development Subcommittee of the Legislative Council that the government is drafting a second version of the regulations on the supervision of fiat stablecoin issuers in Hong Kong, and strives to submit the draft to the Legislative Council for review by the end of this year. The system has a transitional period. Issuers who have meaningful and substantive issuance business can continue to operate during the 'non-violation period' of 6 months after the system takes effect, but must submit a license application within the first 3 months, otherwise they must orderly end their business before the end of the fourth month. The authorities will strengthen investor education and information release.

Chen Haolian pointed out that the Hong Kong government believes that stablecoins play an important role in the Web3 and virtual asset ecosystem, and the connection between the traditional financial system and the virtual asset market is becoming closer. Therefore, there is a need to establish regulatory measures for fiat stablecoin issuers, and to supervise them in a risk-based and flexible manner.

Hong Kong Monetary Authority Assistant CEO (Monetary Management) Ho Hon Kit stated at the meeting that the list of license applicants will be immediately announced by the Hong Kong Monetary Authority for citizens to check. The regulations on regulating the issuance of Hong Kong dollar stablecoins have extraterritorial effects, and will cooperate with regulatory agencies in other regions to regulate foreign issuers and establish a passport system in cooperation with regulatory agencies around the world in the long run.

Edited by Jeffrey