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Hong Kong pushes forward with stablecoin bill in legislative council

Author: Content Editor
Hong Kong is presenting a stablecoin bill to establish a legal framework for fiat stablecoin issuers. The proposed regulation would require stablecoin issuers to hold reserves equal to the value of circulating stablecoins in liquid and high-quality assets. It would also ensure the right of stablecoin holders to redeem their coins at face value without excessive fees or delays. The bill incorporates risk management procedures, disclosure requirements, and anti-money laundering safeguards. The Hong Kong Monetary Authority would be responsible for licensing issuers and monitoring compliance. The move comes as the market capitalization of stablecoins reaches $220 billion, with concerns about their potential to disrupt financial systems and undermine monetary policies. Hong Kong's regulatory framework aims to differentiate itself from China's strict cryptocurrency restrictions and attract digital asset innovators.

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