Speaking at the event, the Deputy Secretary for Financial Services and the Treasury and the Monetary Authority, Mr. Andrew Chan, reiterated that the necessary preparatory work is being carried out to legislate on the regulatory regime for fiat currency stablecoin issuers, with the goal of submitting the draft legislation to the Legislative Council by the end of this year. The Hong Kong government has a clear concept for the development of virtual assets and the third-generation Internet (Web 3.0), emphasizing that financial innovation can only be encouraged by providing transparent, certain and predictable regulatory environments. Chen Haolian pointed out that as virtual assets become mainstream assets, there is a consensus in the market to establish a regulatory framework for fiat currency reference stablecoin (FRS) issuers, which is essential to managing potential monetary and financial stability risks, while ensuring transparency and appropriate safeguards. The proposed framework requires FRS issuers to meet several key requirements, including becoming a Hong Kong-registered entity, registering and operating in Hong Kong, having senior management personnel in Hong Kong, and maintaining 100% reserve assets to ensure that all stablecoins in circulation are fully backed by equivalent reserves. The relevant regulations are designed to protect stablecoin users and promote the stable and healthy development of the market.