Hong Kong will submit the "Stablecoin Ordinance Draft" for its first reading to the Legislative Council on December 18th

On December 6, Hong Kong will submit the "Stablecoin Ordinance Draft" to the Legislative Council for its first reading on December 18. The draft aims to improve the regulatory framework for virtual asset activities, to address potential risks posed by fiat stablecoins to financial stability, ensure sufficient protection for users, and leverage the benefits that can be brought about by virtual assets and related technologies. According to the proposed licensing system, anyone conducting any of the following activities must first obtain a license issued by a financial management commissioner: issuing fiat stablecoins in Hong Kong during business operations; issuing fiat stablecoins claimed to be pegged to the value of Hong Kong dollars during business operations; or actively promoting their issuance of fiat stablecoins to the public in Hong Kong. To effectively implement this system, it is also suggested in the draft that necessary supervisory, investigative and enforcement powers should be granted to financial management commissioners.