In a letter to virtual asset industry participants in Hong Kong, Xu Zhengyu, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, stated that the government and regulatory agencies would establish a comprehensive regulatory system for the development of virtual assets, build market confidence, and develop a new policy path to long-term development
Hong Kong to Tighten regulations on Stablecoins
The Hong Kong Monetary Authority is considering tightening the supervision of “stable coins” that may have payment capabilities,
Stablecoins, according to Xu Zhengyu, may pose dangers distinct from other virtual assets, such as whether the mechanism utilized to offer value support is robust, or whether when the “stablecoin” payment function is blocked, it may result in real economic activity. influence, and so on.