Hong Kong has implemented a minimum capital requirement of HK$25 million for companies seeking to issue fiat-backed stablecoins, according to a confirmation from the city’s Web3 Development Group. The regulation, effective this year, mandates fully backed reserves in liquid, low-risk assets.
Issuers must guarantee 1:1 redemption within a short timeframe and undergo independent audits verifying reserve quality. Lui Chi-hung, a member of the government-established group, emphasized this framework aims to absorb market shocks and strengthen investor confidence.
The regulation positions Hong Kong in direct competition with global frameworks like the EU’s MiCA, potentially attracting international institutions to the local virtual asset ecosystem.
Source: Hong Kong’s Web3 Development Group
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