Hong Kong Sets HK$25M Capital Threshold for Fiat-Backed Stablecoin Issuers

Hong Kong's stablecoin regulatory framework permits only fiat-collateralized stablecoins, with applicants required to hold minimum capital of HK$25 million, Raymond Lui, member of the Stablecoin Review Tribunal and Web3 Development Group, said on Nov. 21, Aastocks reports. Issuers must invest reserve fiat funds in highly liquid, low-risk assets to ensure reliable backing of stablecoin value. The framework also mandates independent audits and compliance documentation submitted to regulatory authorities to demonstrate adherence to operational and risk management standards.