Hong Kong's Stablecoin Bill Under Legislative Review

According to Foresight News, the Hong Kong Legislative Council's relevant bill committee has begun its first review of the Stablecoin Bill, which is expected to be passed into law within a few months. Ho Siu-Kwong, Deputy Secretary for Financial Services and the Treasury Bureau, stated that issuing stablecoins pegged to the Hong Kong dollar, whether domestically or abroad, will require a license. Licensed entities must maintain a robust reserve stabilization mechanism, ensuring that reserve assets are composed of high-quality and highly liquid assets, with a total value at least equal to the circulating fiat stablecoin denomination at all times, and must be properly segregated and safeguarded. Additionally, according to Ho Hon-Kit, Assistant Director of the Hong Kong Monetary Authority (Monetary Management), some licensed stored value payment companies are currently participating in a sandbox trial for cross-border payments. However, stablecoins in Hong Kong remain in the sandbox testing phase, with hopes to expedite the process.