The Hong Kong "Stablecoin Bill" has been published in the gazette and is scheduled for first reading in the Legislative Council on December 18

ChainCatcher news, according to the press release from the Government of the Hong Kong Special Administrative Region, Hong Kong today published the "Stablecoin Bill" in the Gazette to introduce a regulatory framework for fiat-backed stablecoin issuers in Hong Kong. The purpose of the "Bill" is to improve the regulatory framework for virtual asset activities to address the potential risks that fiat-backed stablecoins pose to financial stability, ensure that users have adequate protection, and harness the benefits that virtual assets and their related technologies can bring. Under the proposed licensing system, anyone engaging in any of the following activities must obtain a license from the Financial Management Commissioner:

(i) Issuing fiat-backed stablecoins in Hong Kong as part of their business;

(ii) Issuing fiat-backed stablecoins that claim to be pegged to the value of the Hong Kong dollar as part of their business;

(iii) Actively promoting the issuance of their fiat-backed stablecoins to the public in Hong Kong.

To effectively implement the system, the "Bill" also proposes to grant the Financial Management Commissioner necessary regulatory, investigative, and enforcement powers. The "Bill" will be submitted to the Legislative Council for its first reading on December 18.