Hong Kong's Secretary for Justice, Lam Ting-kwok, announced that any entity issuing stablecoins pegged to the Hong Kong dollar, whether based in Hong Kong or abroad, must obtain a license from the Monetary Authority of Hong Kong. This move comes as virtual asset trading gains momentum, with most transactions occurring on digital platforms where investors often deposit assets for returns. The regulation requires issuers to adhere to strict guidelines on reserve asset management and redemption, ensuring client assets are properly segregated and stability mechanisms are robust.