Hong Kong Secretary for Justice: Any entity issuing stablecoins pegged to the Hong Kong dollar, whether in Hong Kong or outside Hong Kong, must apply for a license.

Hong Kong Special Administrative Region Government Secretary for Justice Lam Ting-kwok stated that virtual asset trading is becoming increasingly active, with the majority of transactions conducted through virtual asset trading platforms. Many investors place their virtual assets on trading platforms to earn returns. In recent years, "stablecoins," digital assets pegged to fiat currencies, have rapidly gained popularity. Anyone issuing a fiat stablecoin in Hong Kong or claiming to be pegged to the Hong Kong dollar in Hong Kong or abroad must apply for a license from the Monetary Authority. Such parties must comply with regulations regarding reserve asset management and redemption, including proper segregation of client assets and maintaining a robust stability mechanism.