the draft regulations on regulating stablecoin issuers have been submitted to the Hong Kong Legislative Council for review this week. Wu Jie Zhuang, a member of the Legislative Council, chairman of the Web3 and Virtual Asset Development Subcommittee, pointed out that stablecoins are the infrastructure of virtual assets. In addition to being used for investment, they can also be used for cross-border payments, which is an important tool for citizens to participate in virtual assets. However, the current regulatory direction suggests that issuers should deposit reserve assets with Hong Kong banks, which may not comply with local regulations of individual currency traders. Therefore, they will intensify communication with the government and the industry to seek compromise solutions, such as mutual recognition of contracts or bills between the two places, without requiring assets to be stored in Hong Kong.