PANews reported on November 21 that, according to Zhitong Finance, Lu Zhihong, a member of the Hong Kong Stablecoin Review Tribunal and the Web3 Development Group, stated that Hong Kong has established a clear institutional framework for the regulation of virtual assets, particularly in the issuance and regulation of stablecoins. Currently, Hong Kong only allows the compliant issuance of "fiat-backed stablecoins" backed by fiat currency. Relevant institutions must strictly comply with regulatory requirements to ensure transparent issuance and asset security. Lu Zhihong pointed out that regulators have set several key requirements for stablecoin issuers, including: 1. Capital threshold: Applicants must have at least HK$25 million in capital to ensure sufficient financial strength for operation and to cope with market risks; 2. Asset management requirements: The fiat currency funds collected by the issuer must be invested in highly liquid, low-risk assets to ensure that the value of the stablecoin can be reliably supported; 3. Redemption mechanism: Issuers must establish a clear and enforceable redemption arrangement, allowing holders to redeem fiat currency at a one-to-one ratio within a short period, protecting user rights. He added that stablecoin issuers must also provide compliance proof to regulators through independent audits.PANews reported on November 21 that, according to Zhitong Finance, Lu Zhihong, a member of the Hong Kong Stablecoin Review Tribunal and the Web3 Development Group, stated that Hong Kong has established a clear institutional framework for the regulation of virtual assets, particularly in the issuance and regulation of stablecoins. Currently, Hong Kong only allows the compliant issuance of "fiat-backed stablecoins" backed by fiat currency. Relevant institutions must strictly comply with regulatory requirements to ensure transparent issuance and asset security. Lu Zhihong pointed out that regulators have set several key requirements for stablecoin issuers, including: 1. Capital threshold: Applicants must have at least HK$25 million in capital to ensure sufficient financial strength for operation and to cope with market risks; 2. Asset management requirements: The fiat currency funds collected by the issuer must be invested in highly liquid, low-risk assets to ensure that the value of the stablecoin can be reliably supported; 3. Redemption mechanism: Issuers must establish a clear and enforceable redemption arrangement, allowing holders to redeem fiat currency at a one-to-one ratio within a short period, protecting user rights. He added that stablecoin issuers must also provide compliance proof to regulators through independent audits.