According to Cointelegraph, the Hong Kong government released the proposed stablecoin bill on December 6 and submitted it to the Hong Kong Legislative Council for its first review on December 18.
The bill will undergo three readings, including debate, review, and possible amendments, before being sent to the Chief Executive for signature into law. Key elements of the bill include licensing requirements for stablecoin issuers, issuance and marketing restrictions, and consumer protections.
Once it becomes law, stablecoin issuers will need to obtain a license from the Hong Kong Monetary Authority and meet comprehensive requirements. Only regulated entities and platforms can offer or market stablecoins in Hong Kong.
After the bill is passed, Hong Kong may experience a similar shift in stablecoin usage as Europe, where compliant stablecoins have come to dominate the European market after MiCA regulations came into effect.