BlockBeats news, on December 26, reported by Cointelegraph, that the Hong Kong government published the (Stablecoin Regulation Draft) in the Hong Kong Special Administrative Region Gazette on December 6, bringing it closer to becoming law. On December 18, the bill was submitted for a first reading in the Hong Kong Legislative Council. Before the bill can be signed into law, it must go through three readings, which include a series of debates, reviews, and potential amendments. Once the bill passes the three readings, it will be forwarded to the Chief Executive of the Hong Kong government for signing into law.
The stablecoin bill consists of three key components, including licensing and requirements for designated stablecoin issuers, designated stablecoin issuance and marketing restrictions, and broader consumer protections. Once the bill is signed into law, stablecoin issuers in Hong Kong will be required to obtain a license from the Hong Kong Monetary Authority (HKMA), the central banking institution of the Hong Kong Special Administrative Region, and issuers must comply with comprehensive requirements to obtain the license. Regulators will assess issuers and their controllers, resources, stablecoins, reserve assets, and mechanisms to stabilize their value. Furthermore, only regulated entities and platforms will be allowed to offer stablecoins or sell them to the public in Hong Kong.