According to a report on December 26, Hong Kong is moving closer to introducing clear rules for stablecoins.
A draft law, known as the Stablecoins Bill, was recently shared in an official government notice. It has now reached the Legislative Council, which will be reviewed in three stages before becoming law.
The proposed law focuses on three main areas. First, it requires anyone issuing stablecoins in Hong Kong to apply for a license from the Hong Kong Monetary Authority (HKMA).
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Second, it sets rules for offering and distributing these tokens. Third, it introduces marketing guidelines and stronger consumer protections.
To get a license, issuers must meet strict standards. This includes proving they have enough resources, stable reserves, and reliable systems to keep the coin’s value steady.
Regulators will also check the backgrounds of the people in charge of the issuing companies. Only licensed issuers will be allowed to create or promote stablecoins in Hong Kong.
The bill also aims to make stablecoins safer for users. It sets clear rules for how companies can handle these tokens and ensures that unauthorized platforms cannot offer them.
Before the law can take effect, it must pass three formal reviews in the Legislative Council. Each review will allow lawmakers to debate and suggest changes.
If approved, the final version will be sent to the region’s leader for approval and signing into law.
Hong Kong’s efforts to regulate stablecoins are just one part of its growing focus on digital finance. Recently, HKMA introduced the Digital Bond Grant Scheme (DBGS) program. What is the purpose of this program? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
