Hong Kong handed a stablecoin invoice that may allow the area to ascertain a licensing regime for fiat-backed stablecoin issuers.
“Hong Kong’s stablecoins are backed by fiat currency as underlying assets, and we welcome global enterprises and institutions interested in issuing stablecoins to apply in Hong Kong,” legislative council member Johnny Ng stated on X on Wednesday.
Establishments are anticipated to have the ability to apply for a license from the Hong Kong Financial Authority by the year-end.
Hong Kong has been engaged on establishing a stablecoin regime since 2023. The nation had revealed a session paper on stablecoin pointers in direction of the tip of 2023. It later launched the Stablecoin Bill, which the Legislative Council of the Hong Kong Particular Administrative Area handed in its third studying, Ng’s put up stated.
The area has been trying to sustain with nations all over the world which were establishing their stablecoin regimes. The European Union began licensing stablecoin issuers final yr after passing its wide-ranging bespoke crypto invoice, known as the Markets in Crypto Belongings regulation (MiCa). In the meantime, the U.S. has a stablecoin invoice that’s passing via Congress, and the U.Okay. has been gathering suggestions on draft laws that may also have an effect on stablecoins.
The stablecoin sector has turn into the most well liked development in recent times, with each crypto and TradFi corporations ramping up their publicity to the trade. Ben Reynolds, BitGo’s managing director of stablecoins, stated at Consensus 2025 that enormous banks are more and more taking discover of the trade, largely out of worry that they may lose market share to the digital {dollars}.
Learn extra: Banks Exploring Stablecoin Amid Fears of Shedding Market Share, BitGo Govt Says
