The Hong Kong government has published a stablecoin bill in its official gazette.

This action forms part of the city’s approach to balance financial stability and consumer protection, while developing its virtual asset sector.

Following a public consultation in July, the bill specifies licensing requirements for fiat-referenced stablecoins and tokens claiming stable value against the Hong Kong dollar.

These licenses are also necessary for marketing such tokens to the public.

Under the proposed legislation, the Hong Kong Monetary Authority (HKMA) would have the power to oversee, investigate, and enforce compliance.