In addition to launching an index to track virtual currencies, the Hong Kong Special Administrative Region (HKSAR) government is actively researching legislative proposals aimed at regulating stablecoin issuers.
Zhang Manli, the Deputy Secretary for Innovation, Technology and Industry of Hong Kong, indicated that the framework is expected to be presented to the Legislative Council later this year.
The proposal aims to ensure that fluctuations in stablecoin prices are accurately reflected in the index, thereby supporting the development of a robust trading center for stablecoins and virtual assets in Hong Kong.