PANews reported on December 6 that according to a news release from the Hong Kong Special Administrative Region Government, Hong Kong published the Stablecoin Bill in the Gazette today to introduce a regulatory system for issuers of fiat stablecoins in Hong Kong. The Bill aims to improve the regulatory framework for virtual asset activities to address the potential risks posed by fiat stablecoins to financial stability, ensure that users have adequate protection, and maximize the benefits of virtual assets and related technologies. Under the proposed licensing system, anyone who conducts any of the following activities must first obtain a license from the Monetary Authority:
(i) issuing legal tender stablecoins in Hong Kong in the course of its business;
(ii) in the course of its business, issuing a fiat currency stablecoin purportedly pegged to the value of the Hong Kong dollar; or
(iii) actively promote the issuance of its fiat stablecoin to the Hong Kong public.
In order to effectively implement the system, the Bill also proposes to give the Monetary Authority the necessary supervisory, investigative and law enforcement powers. The Bill will be submitted to the Legislative Council for first reading on December 18.
