🇭🇰 The Hong Kong "Stablecoin Regulation Draft" has officially come into effect. The Hong Kong "Stablecoin Regulation Draft" officially took effect on August 1, establishing a licensing system for fiat stablecoin issuers in Hong Kong, improving the regulatory framework for virtual asset activities in Hong Kong to maintain financial stability while promoting financial innovation. After the implementation of the "Stablecoin Regulation," anyone who issues fiat stablecoins in Hong Kong during business operations, or issues fiat stablecoins claiming to be pegged to the value of the Hong Kong dollar in Hong Kong or elsewhere, must apply for a license from the Financial Management Commissioner. Relevant parties must comply with regulations regarding reserve asset management and redemption, including properly segregating client assets, maintaining a sound stabilization mechanism, and processing redemption requests from stablecoin holders at face value under reasonable conditions. Relevant parties must also meet a series of requirements for combating money laundering and terrorist financing, risk management, disclosure regulations, auditing, and suitability. The Financial Management Commissioner will consult further on the detailed regulatory requirements of the system in due course.