The Hong Kong Monetary Authority (HKMA) plans to introduce licensing for steblecoin issuers and ban the issuance of algorithmic steblecoins.
The regulator will also require each stablecoin to have an equivalent fiat reserve.
Hong Kong’s advisory council on the regulation of digital assets and stablecoins includes subsidiaries of conglomerate Alibaba, Binance, Circle, Visa, MasterCard and Animoca Brands.