The Hong Kong Stablecoin Bill has been submitted to the Legislative Council for first reading

On December 26, it was reported that the Hong Kong government of China published the Stablecoin Bill in the Hong Kong Special Administrative Region Gazette on December 6, bringing it closer to becoming law. On December 18, the bill was submitted to the Hong Kong Legislative Council for the first reading. Before the bill can be signed into law, it must go through the third reading, which includes a series of debates, scrutiny and potential amendments. When the bill passes the third reading, it will be forwarded to the Hong Kong government chief executive for signing it into law.
The stablecoin bill is made up of three key components, including designated stablecoin issuer licenses and requirements, designated stablecoin issuance and marketing restrictions, and broader consumer protections. After the bill is signed into law, stablecoin issuers in Hong Kong will have to obtain a license from the Hong Kong Special Administrative Region's central banking authority, the HKMA, and issuers must comply with the consolidated requirements to obtain a license. The regulator will evaluate issuers and their controllers, resources, stablecoins, reserve assets, and mechanisms to stabilize their value. In addition, only regulated entities and platforms will be allowed to offer stablecoins or sell them to the public in Hong Kong.