The government of Hong Kong is taking steps to introduce the Stablecoins Bill, aimed at establishing a comprehensive regulatory framework for digital assets. The bill was made public on 6 December and was first presented to the Legislative Council on 18 December.
It will go through three readings and requires approval from the chief executive before it can become law. The proposed bill includes essential regulations such as mandatory licensing for stablecoin issuers through the Hong Kong Monetary Authority.
Issuers will have to meet strict criteria, including maintaining stable reserves and implementing measures to uphold the value of their coins. Only entities that are regulated will be allowed to promote or offer stablecoins to the public, with strong consumer safeguards in place.
If the bill is passed, it could significantly alter the stablecoin market in Hong Kong, potentially following the pattern seen in Europe with the introduction of the MiCA regulations.
