TechFlow news, December 18 — According to the Hong Kong government press release, Financial Secretary Paul Chan delivered a second reading of the "Stablecoin Bill" at today's Legislative Council meeting, urging its swift passage. The proposed regulatory framework focuses on three key areas:
(1) Licensees must maintain a sound reserve stabilization mechanism, ensuring that stablecoin reserve assets consist of high-quality, highly liquid assets, with a total value at all times equal to or exceeding the outstanding face value of fiat-backed stablecoins, and such reserves must be properly segregated and safeguarded;
(2) Stablecoin holders should have the right to redeem stablecoins from issuers at face value, with redemption requests processed within a reasonable timeframe and without unreasonable fees;
(3) A series of requirements must be established covering anti-money laundering, risk management, disclosure obligations, auditing, and fit-and-proper criteria.
