Hong Kong pushes for stablecoin regulation with new bill
The bill mandates strict licensing and reserve requirements for stablecoin issuers through the Hong Kong Monetary Authority, with only regulated entities permitted to market stablecoins.
Hong Kong is advancing its Stablecoins Bill as the government seeks to establish a clear regulatory framework for digital assets. The proposed legislation was published on 6 December and entered the Legislative Council for its first reading on 18 December. Before becoming law, the bill requires three readings and approval from the region’s chief executive.
The bill outlines key regulations, including mandatory licensing for stablecoin issuers through the Hong Kong Monetary Authority. Issuers must meet strict requirements, such as maintaining stable reserves and mechanisms to ensure the value of their coins. Only regulated entities will be authorised to market or offer stablecoins to the public, with robust consumer protections included.
If enacted, this legislation could reshape the stablecoin market in Hong Kong, potentially mirroring Europe’s experience under MiCA regulations. In Europe, compliance-driven issuers have thrived while others exited the market, paving the way for a more regulated digital asset landscape.
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