Hong Kong Legislative Council Member: The Hong Kong government is about to launch legislative proposals for the supervision system of stablecoin issuers and the supervision system of virtual asset over-the-counter exchanges

Li Weihong, a member of the Hong Kong Legislative Council, wrote an article in the Ta Kung Pao, focusing on how to explore new market opportunities, improve the pain points of Hong Kong's financial services industry and enhance the momentum of economic development, which pointed out that the Hong Kong Securities Supervision Commission is welcome to relax investor restrictions on virtual asset transactions and allow retail investors to participate appropriately; It is recommended that regulators steadily increase retail investors' participation in more different virtual asset product transactions (including the addition of different currencies) through strengthening investor education, and emphasize that they will receive greater regulatory protection in local compliance platforms to promote the development of Hong Kong's virtual asset market.
At the same time, the industry also expects the Securities Supervision Commission to expedite the approval of the upgrade of asset management licenses and moderately relax the requirements for intermediaries to sell virtual asset ETFs (such as related product declarations and customer knowledge assessments).
Li Weihong said that the Hong Kong Special Administrative Region government is about to launch legislative proposals for the supervision system of stablecoin issuers and the supervision system of virtual asset over-the-counter exchanges; it is hoped that the approval process for future licensing will be as streamlined as possible, the threshold requirements should not be too high, and an appropriate balance will be struck between supervision and market development.