Hong Kong's Stablecoin Ordinance comes into force: reserve assets must fully cover the face value of circulation

On August 1, Hong Kong's Stablecoin Ordinance came into effect, establishing a licensing system for stablecoin issuers and improving Hong Kong's regulatory framework for virtual asset activities. Yang Debin, president of the Greater Bay Area International Information Technology Association, said that the development of stablecoins in the world has now reached a certain scale. The introduction of the Stablecoin Ordinance in Hong Kong at this time is a manifestation of the evolution of supervision with the times. In line with international standards, Hong Kong, China also strives to be in line with the standards of other countries and regions in formulating stablecoin-related regulations. According to the Hong Kong Stablecoin Ordinance, licensees must ensure that the market value of the reserve assets of the designated stablecoins issued by them is always not lower than the face value of the stablecoins that have not been redeemed and are in The licensee should consider the risk profile of the reserve assets and ensure that there is appropriate excess collateral to cover market risks.