Hong Kong Legislator: Stablecoins Have No Pump-and-Dump Opportunity, Regulations Reference Industry Practices in the US, Japan, and EU

BlockBeats News, August 3rd. Hong Kong Legislative Council member Ted Hui said in an interview that the core feature of a fiat-backed stablecoin is that it must be 100% backed by highly liquid fiat reserves, and the main current function of a fiat-backed stablecoin is still international payments, with no opportunity for speculation.

During the drafting of the "Stablecoin Regulations," reference was made to the United States, Japan, and the EU's MiCA (Markets in Crypto-Assets) regulation, as well as Singapore's Payment Service Act (PSA). The legislation considers international circulation and demand, adhering to both international and national standards. In addition, Hui also mentioned that Hong Kong's stablecoin should not compete for market share with existing products but should explore new markets. (Daily Economic News)