Hong Kong’s Stablecoins Bill Moves to Legislative Council

The Stablecoins Bill in Hong Kong has taken a step forward in the Legislative Council, showing progress towards establishing a regulatory framework for stablecoins in the area.

On December 6, the bill was published in the Hong Kong Gazette and introduced for its first reading in the Legislative Council on December 18.

The bill covers three key aspects: obtaining a license for stablecoin issuers, limitations on offerings and advertisements, and strengthened measures to protect consumers.

If passed, the bill will require all stablecoin issuers in Hong Kong to obtain a license from the Hong Kong Monetary Authority (HKMA), the central banking authority in the region.

Issuers seeking a license will undergo a thorough evaluation process, which will assess their controllers, resources, and strategies to maintain the stability of their stablecoins. Only entities that meet the regulatory criteria will be allowed to issue or promote stablecoins to the public.