Lu Zhihong: Hong Kong’s regulatory framework for stablecoins is clear, requiring issuers to meet various capital and asset requirements, as well as redemption standards

Hong Kong has established a transparent regulatory framework for stablecoins, allowing only fiat-backed issuances. Issuers are required to maintain a capital threshold and must comply with strict asset management regulations.

Stablecoin issuers must set up a reliable redemption mechanism for users to exchange at a 1:1 ratio with fiat. Compliance must be verified by independent audits to secure user rights and asset integrity.