Briefing
Building out Hong Kong's stablecoin regulatory framework - Stablecoins Bill
The Hong Kong Government has published the Stablecoins Bill (the Bill) which sets out the statutory framework for the proposed regime applicable to stablecoins (the Proposed Regime). The Bill is under the Legislative Council’s consideration as at the date of this article’s publication, having been gazetted on 18 December 2024. The First Reading in the Legislative Council took place on 18 December 2024 and it is now being considered by the Bills Committee.
The Proposed Regime is aligned with the conclusions of the Financial Services and the Treasury (the FSTB) and the Hong Kong Monetary Authority’s (HKMA) joint consultation published in July 2024. For discussions around regulatory and policy intentions of the Proposed Regime, please see our August 2024 client briefing.
The key features of the Proposed Regime are outlined in this briefing as we consider the licensing, product offering and extraterritorial pieces. We have also included as an appendix a summary of the key operational requirements pertaining to licensees and the management of reserves. One of the interesting pieces we have discussed broadly through the development of the Proposed Regime is the extraterritorial effect which will require careful consideration of both impact to the Hong Kong payment system as well as interaction with Hong Kong persons.
Whether you are an issuer, an intermediary or a service provider – onshore or offshore – Freshfields is here to help you plan for and steer through the Proposed Regime.
