ChainCatcher news, during the AMA event "Let's BUILD, Link the Future, Co-create Hong Kong's Web3 New Ecosystem" held by OSL, Hong Kong Legislative Council member Wu Jiezhuang revealed that the Hong Kong fiat-backed stablecoin bill is currently under review by the Legislative Council. The Hong Kong Monetary Authority (HKMA) will soon follow up with the licensing application process to provide a clearer and more robust compliance pathway for the market. Additionally, Hong Kong will initiate a public consultation on OTC and custody licenses and plans to start legislation by the end of the year to ensure that both online and offline OTC trading platforms are under effective regulation, creating a safer and more transparent market environment.Wu Jiezhuang further stated that the Hong Kong Securities and Futures Commission announced 20 new regulatory measures during Consensus this February, including inviting top global exchanges to apply for licenses in Hong Kong, simplifying the compliance process for exchanges to list tokens, and opening up staking/contract and other derivative businesses, all of which are long-term potential benefits.

ChainCatcher news, the Hong Kong Monetary Authority stated that it will adopt a risk-based regulatory approach, requiring fiat stablecoin issuers to demonstrate that their reserve asset investment policies and liquidity management policies are commensurate with the scale and complexity of their business, ensuring that they can meet redemption requests under both normal and stressed conditions.Regarding the types of reserve assets, the Monetary Authority indicated that, in general, high-quality and highly liquid reserve assets may include:Coins and banknotes;Deposits with licensed banks;High-quality securities that represent claims against governments, central banks, or qualified international organizations, or are guaranteed by them;Overnight reverse repurchase agreements with extremely low counterparty risk collateralized by such securities; andTokenized forms of the above assets.Issuers must take ultimate responsibility for the risk management of reserve assets and should also discuss investment policies with the Monetary Authority. As for other investment instruments, the Monetary Authority will consider them on a case-by-case basis, with relevant factors including the supply and liquidity of such assets, as well as the ability to liquidate such assets in a short time.