According to BlockBeats, on December 26, Cointelegraph reported that the Hong Kong government published the (Stablecoin Bill) in the (Hong Kong Special Administrative Region Gazette) on December 6, bringing it closer to becoming law. On December 18, the bill was submitted to the Hong Kong Legislative Council for a first reading. Before the bill is signed into law, it must go through three readings, which include a series of debates, reviews, and potential amendments. When the bill passes the 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 protections. Once the bill is signed into law, stablecoin issuers in Hong Kong will have 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 a license. The regulator will assess 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 in Hong Kong or sell them to the public.