Hong Kong's Financial Secretary, Paul Chan, has emphasized that users purchasing unregulated stablecoins assume all associated risks. In a statement to the Legislative Council, Chan highlighted that while licensed stablecoin issuers must adhere to strict risk management protocols, including investing reserves in qualified assets, unregulated stablecoins do not offer such protections. The Hong Kong Monetary Authority (HKMA) is tasked with ensuring financial stability by potentially imposing additional requirements on licensed issuers. The HKMA also aims to enhance the interoperability of compliant stablecoins with other payment systems. However, only stablecoins regulated under the Stablecoin Ordinance and acquired from designated institutions are protected, leaving users of unregulated stablecoins exposed to potential risks.