Legislative Council Discusses Stablecoin Bill
Hong Kong’s Legislative Council convened to discuss the government’s proposed stablecoin bill, introduced in December 2024. The bill aims to establish a comprehensive regulatory framework for stablecoin issuers, reflecting the region’s ambition to become a global cryptocurrency hub.Key Provisions of the Bill
The proposed legislation mandates that stablecoin issuers obtain a license from the Hong Kong Monetary Authority (HKMA) and maintain reserves in high-quality, liquid assets. Issuers must also implement robust stabilization mechanisms to ensure the stability of their tokens.Ongoing Efforts to Strengthen Crypto Regulation
In addition to the stablecoin bill, discussions included expanding regulatory oversight to over-the-counter (OTC) crypto trading and establishing licensing requirements for custodians. The government plans to conduct further public consultations in 2025 to refine these regulations.Crypto-Friendly Policies and Ecosystem Growth
Since 2023, Hong Kong has introduced licensing regimes for crypto exchanges and launched sandbox initiatives to foster innovation. Key participants, such as Standard Chartered and Animoca Brands, are already exploring opportunities within the regulatory framework, reinforcing Hong Kong’s position as a crypto-friendly jurisdiction.
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