Hong Kong’s commitment to regulating stablecoins has intensified with the introduction of stricter capital requirements. Lui Chi-hong, member of the Stablecoin Review Tribunal and Web3 Development Group, outlined the new rules stating that only fiat-backed stablecoins supported by legal currency are currently permitted. Applicants seeking authorization must demonstrate a minimum capital of 25 million Hong Kong dollars to ensure operational robustness and mitigate market risk. The regulations demand that issuers invest their fiat reserves in highly liquid, low-risk assets to guarantee the stability of the associated stablecoin. Furthermore, issuers will be subject to independent audits and compliance verification by regulatory authorities.