Lv Zhihong: The regulatory framework for stablecoins in Hong Kong is clear, and issuers must meet multiple requirements such as capital, assets, and redemption According to a report by Zhitong Finance, Lv Zhihong, a member of the Hong Kong Stablecoins Review Tribunal and Web3 Development Group, stated that Hong Kong has established a clear institutional framework for regulating virtual assets, especially in the issuance and supervision of stablecoins. At present, Hong Kong only allows compliant issuance of "fiat collateralized stablecoins" supported by legal tender. Relevant institutions must strictly comply with regulatory requirements to ensure transparency in issuance and asset safety. Lv Zhihong pointed out that regulatory authorities have set several key requirements for stablecoin issuers, including: 1. Capital threshold: applicants must have a capital scale of at least HKD 25 million to ensure sufficient financial strength to operate and cope with market risks; 2. Asset management requirements: The fiat funds collected by the issuer must be invested in high liquidity, low-risk assets to ensure that the value of the stablecoin can be reliably supported; 3. Redemption mechanism: The issuer needs to establish clear and executable redemption arrangements, allowing holders to exchange fiat currency on a one-to-one basis in a short period of time to protect user rights. He added that stablecoin issuers also need to provide compliance certification to regulatory agencies through independent audits.