Hong Kong Legislative Council officially passes stablecoin bill: issuers must apply for a license from the Monetary Authority

Golden Finance reports that the Hong Kong government welcomes the Legislative Council's passage of the "Stablecoins Bill" today (May 21) to establish a licensing system for stablecoin issuers in Hong Kong, improve the regulatory framework for virtual asset activities in Hong Kong, maintain financial stability, and promote financial innovation. After the implementation of the Stablecoins Ordinance, anyone who issues fiat stablecoins in Hong Kong in the course of their business, or issues fiat stablecoins claiming to anchor the value of the Hong Kong dollar in Hong Kong or elsewhere, must apply for a license from the Monetary Authority. Relevant personnel must also comply with a series of requirements for combating money laundering and terrorist fundraising, risk management, disclosure regulations, auditing, and appropriate selection. The financial management commissioner will consult further on the detailed regulatory requirements of the system in a timely manner. In addition, the regulation only allows designated licensed institutions to sell fiat stablecoins in Hong Kong, and only fiat stablecoins issued by licensed issuers can be sold to retail investors. To prevent fraud, only advertisements related to the issuance of licensed fiat stablecoins will be allowed at any time (including a six-month non violation period).