Financial Services Regulatory partner Sara Or is quoted in an article by Ming Pao on stablecoins and the implementation of the Hong Kong’s Stablecoins Ordinance (the “Ordinance”).
Being asked about the risks associated with stablecoins, Sara states that insofar as stablecoin holders are concerned, the major risks associated with holding stablecoins include the issuer’s credit risk, operational risk, technology risk and reputation risk. She notes that the Ordinance has specified requirements on managing these risks, including minimum financial resource requirements, minimum reserve asset requirements and their management, the right for holders to redeem stablecoins at face value along with related arrangements and standards for risk governance.
Read the full article here.
