Hong Kong’s Stablecoins Bill Enters Legislative Council

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Hong Kong has taken a significant step towards establishing a regulatory framework for stablecoins with the publication of the proposed Stablecoins Bill.

The bill was published in the region’s Gazette on December 6 and has now been forwarded to the Legislative Council for its first reading. The bill will need to go through three readings, involving debates, examinations, and potential amendments, before it can be enacted into law.

Once it passes its third reading, it will be presented to the chief executive of Hong Kong for final approval.

Law firm King & Wood Mallesons has identified three key components of the proposed Stablecoins Bill, including requirements for licensing and regulating stablecoin issuers, restrictions on specified stablecoin offerings, and marketing limitations with additional consumer protections.