Wu Jiezhuang: I hope Hong Kong will improve the development and regulatory framework of Web3 and virtual assets as soon as possible
Hong Kong Legislative Council member Wu Jiezhuang announced on X that the Deputy Director of Financial and Treasury Bureau, Chen Haolian, released a briefing and explained the latest situation of "proposed regulatory system for stablecoin issuers": the government believes that stablecoins play an important role in the Web3 and virtual asset ecosystem, and the connection between the traditional financial system and the virtual asset market is becoming closer. Therefore, it is necessary to establish a regulatory system for fiat-backed stablecoin issuers, based on risk and flexible supervision. In addition to the existing regulatory system for virtual asset trading platforms, the establishment of a licensing system for fiat-backed stablecoin issuers will strengthen Hong Kong's virtual asset regulatory framework, be consistent with international standards, and effectively mitigate the risks that fiat-backed stablecoin activities pose to financial stability.
The policy objectives of the proposed regulatory framework include:
*Developing preventive measures to deal with the potential risks that fiat-backed stablecoins pose to currency and financial stability;
*Providing protection for users of fiat-backed stablecoins;
*Developing a regulatory system for fiat-backed stablecoin issuers that meets international regulatory recommendations, in order to maintain Hong Kong's position as an international financial center;
*Providing a clear legal and regulatory environment to promote the sustainable and responsible development of Hong Kong's virtual asset ecosystem.
He himself expressed approval for the progress of the Special Administrative Region government's work and hoped that Hong Kong would soon improve its development and regulatory framework for Web3 and virtual assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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