The Hong Kong stablecoin bill has been submitted for first reading to the Legislative Council

On December 26th, according to Cointelegraph, the Hong Kong government of China published the "Stablecoins Bill" in the Hong Kong Special Administrative Region Gazette on December 6th, bringing it closer to becoming law. On December 18th, the bill was submitted to the Hong Kong Legislative Council for first reading. Before the bill is signed into law, it must undergo three readings, including a series of debates, reviews, and potential amendments. After the bill passes its third reading, it will be forwarded to the Chief Executive of the Hong Kong government to sign it into law. The stablecoin bill consists of three key components, including designated stablecoin issuer licenses and requirements, designated stablecoin issuance and marketing restrictions, and broader consumer protection. After the bill is signed into law, stablecoin issuers in Hong Kong will have to obtain permission from the Hong Kong Monetary Authority (HKMA), the central banking institution of the Hong Kong Special Administrative Region. Issuers must comply with comprehensive requirements to obtain a license. Regulatory agencies will evaluate the issuer and its controllers, resources, stablecoins, reserve assets, and mechanisms to stabilize their value. In addition, only regulated entities and platforms are allowed to offer stablecoins or sell them to the public in Hong Kong.