Hong Kong Proposes Stablecoin Regulatory Framework

Hong Kong has taken significant steps toward regulating stablecoins with the publication of a bill that establishes a comprehensive framework for issuers and marketers. Under the proposed regulations, stablecoin issuers will be required to secure licenses from the Hong Kong Monetary Authority (HKMA) and maintain reserve assets in local banks, with strict compliance measures including a minimum capital requirement of HK$25 million. The initiative aims to balance financial stability with consumer protection and aligns with international standards, reflecting Hong Kong's ambitions to be a global digital asset hub. The bill is scheduled for its first reading in the Legislative Council on December 18, following public consultations and industry feedback. This legislative move underscores the city's commitment to fostering innovation while managing financial risks, with top officials emphasizing a principle of consistent regulation for similar activities. If passed, the framework will position Hong Kong alongside early adopters in stablecoin regulation.