Hong Kong's Stablecoins Ordinance officially comes into effect: Reserve assets must fully cover the circulating face value

According to Golden Finance, on August 1st, Hong Kong's "Stablecoins Ordinance" officially came into effect, establishing a stablecoin issuer license system and improving Hong Kong's regulatory framework for virtual asset activities. Yang Debin, President of the Greater Bay Area International Information Technology Association, stated that the development of stablecoins has reached a certain scale internationally. The introduction of the Stablecoins Ordinance in Hong Kong at this point is a reflection of keeping up with the times in terms of regulation. In line with international standards, Hong Kong, China also strives to align with the standards of other countries and regions around the world when formulating regulations related to stablecoins. According to the Hong Kong Stablecoins Ordinance, the licensee must ensure that the market value of the reserve assets of the designated stablecoins they issue is always not lower than the face value of the stablecoin that has not been redeemed and is in circulation. The licensee should consider the risk situation of the reserve assets and ensure that there is appropriate excess collateral to cover market risks. (21 Finance)