Hong Kong Stablecoin Review Tribunal: Only fiat-backed stablecoins are permitted.
AI Summary1 min read
TL;DR
Hong Kong's Stablecoin Review Tribunal permits only fiat-backed stablecoins, requiring issuers to have at least HK$25 million in capital and invest in low-risk assets. Compliance must be certified via independent audits.
Tags
DeFiHong Kongstablecoinfiat-backedregulationcapital requirement
According to Mars Finance, on November 21st, Lui Chi-hung, a member of the Hong Kong Stablecoin Review Tribunal and the Web3 Development Panel, stated that currently only fiat-backed stablecoins are permitted. Applicants must have at least HK$25 million in capital to ensure sufficient financial strength for operation and to cope with market risks. The issuer's fiat currency funds must be invested in highly liquid, low-risk assets to ensure the stablecoin's value is reliably supported. Furthermore, they must provide compliance certification to regulatory authorities through an independent audit. (Zhitong Finance)