On December 6th, according to the Hong Kong Special Administrative Region Government News Bulletin, Hong Kong today published the "Stablecoin Regulation Bill" in the constitutional report to introduce a regulatory system for fiat currency stablecoin issuers in Hong Kong. The "Bill" aims to improve the regulatory framework for virtual asset activities to address the potential risks posed by fiat currency stablecoins to financial stability, ensure that users have sufficient protection, and leverage the benefits of virtual assets and related technologies. Under the proposed licensing system, anyone engaging in any of the following activities must first obtain a license from the Commissioner of Financial Management:

(i) Issuing fiat currency stablecoins in Hong Kong during business processes;

(ii) Issuing fiat currency stablecoins claiming to anchor the value of the Hong Kong dollar during business processes; or

(iii) Actively promoting the issuance of their fiat currency stablecoins to the Hong Kong public.

In order to effectively implement the system, the "Bill" also proposes to give the Commissioner of Financial Management necessary regulatory, investigative, and enforcement powers. The "Bill" will be submitted to the Legislative Council for first reading on December 18th.