Wu Jiezhuang: Hope that Hong Kong will soon improve the development and regulatory framework for Web3 and virtual assets

Hong Kong Legislative Council Member Ng Kit-chuang announced in X that Deputy Secretary for Financial Services and the Treasury Chan Ho-Lian released a briefing and explained the latest situation of the "Proposed Stablecoin Issuer Supervision Regime": In view of the important role of stablecoins in Web3 and the virtual asset ecosystem, and the increasingly close connection between the traditional financial system and the virtual asset market, the government believes that there is a need to establish a regulatory regime for fiat stablecoin issuers to regulate fiat stablecoin issuers in a risk-based and flexible manner. In addition to the existing regulatory regime for virtual asset trading platforms, the establishment of a licensing regime for fiat stablecoin issuers will strengthen Hong Kong's regulatory framework for virtual assets, align with international standards, and effectively mitigate the risks to financial stability posed by fiat stablecoin issuance-related activities.
The policy objectives of the proposed regulatory framework include:
* Develop preventive measures to address latent risks to monetary and financial stability posed by fiat stablecoins;
* Provide protection for users of fiat stablecoins;
To develop a regulatory regime for fiat currency stablecoin issuers in line with international regulatory recommendations to maintain Hong Kong's status as an international financial center.
* Provide a clear legal and regulatory environment for the sustainable and responsible development of the virtual asset ecosystem in Hong Kong.
He himself expressed his praise for the progress of the SAR government's work and hoped that Hong Kong would soon improve the development and regulatory framework for Web3 and virtual assets.