TechFlow news — On January 22, according to the Ta Kung Pao, the Hong Kong Legislative Council's Bills Committee held its first review of the "Stablecoin Bill" on January 21. The bill completed its first reading on December 18, 2024, and is expected to be enacted into law within several months. Kenneth Ho, Assistant Secretary for Financial Services and the Treasury, emphasized that all stablecoin products pegged to the Hong Kong dollar—regardless of whether they are issued inside or outside Hong Kong—must obtain a license, following the principle of "same business, same risk, same rules."
The regulations clearly state that license holders must maintain a sound reserve stabilization mechanism, ensuring that reserve assets consist of high-quality and highly liquid assets, with a total value consistently no less than the face value of fiat-referenced stablecoins in circulation. Issuers must process redemption requests at face value within a reasonable timeframe and may not impose unreasonable fees, while also complying with requirements on anti-money laundering, risk management, and information disclosure.
Jeffrey Ho, Assistant Monetary Authority (Monetary Management) at the Hong Kong Monetary Authority, said the regulatory framework draws on standards set by the Financial Stability Board (FSB). Several stored-value payment tool licensed institutions are already participating in cross-border payment sandbox trials. Shen JianGuang, Vice President of JD Group, believes that as an international financial center, Hong Kong has unique advantages in developing its cryptocurrency industry and can provide pioneering experience for the mainland.
