## How Hong Kong Stablecoins Build Risk防线

Stablecoins as a payment tool play an important role in the blockchain ecosystem, but the hidden risks behind them cannot be ignored. Recently, Lu Zhihong, a member of the Hong Kong Web3 Development Group, pointed out that there are multiple potential risk sources in the operation of stablecoins, including improper asset allocation, cybersecurity vulnerabilities, and smart contract flaws.

Hong Kong regulators have provided a systematic solution to this. Unlike traditional financial regulation, the regulation of stablecoins covers the entire lifecycle—from institutional access, daily operations, to eventual exit—with clear normative requirements at each stage. This comprehensive regulatory framework aims to fully prevent and control risks, fundamentally protecting the assets of stablecoin holders.

Interestingly, when positioning stablecoins, regulators emphasize that their focus should be on payment functions rather than investment attributes. This understanding guides the entire regulatory framework—centered on "holding security"—to ensure that users' assets are fully protected when using stablecoins for transactions and settlements. Maintaining price stability, verifying the authenticity of underlying assets, and testing the security of technical systems are all key regulatory priorities.

From this perspective, Hong Kong's stablecoin regulatory framework not only reduces systemic risk but also builds confidence among users.