Hong Kong Legislative Council member: stablecoins have no speculative opportunities, and the regulations will refer to similar practices in the US, Japan, Singapore, and the EU.

On August 3, Hong Kong Legislative Councillor Yau Tak-gan stated in an exclusive interview that the core feature of fiat stablecoins is that they must be 100% backed by highly liquid currency-like assets. The main function of fiat stablecoins at present is still international payments, with no opportunity for speculation. During the formulation of the "Stablecoin Ordinance", references were made to the United States, Japan, and the EU's MiCA (Regulation on Markets in Crypto-Assets), as well as Singapore's Payment Service Act (PSA). The legislation considers international liquidity and demand, adhering to international and national standards. In addition, Yau Tak-gan also mentioned that Hong Kong's stablecoins should not compete for the market of existing products but should explore new markets. (Daily Economic News)