Hong Kong Passes stablecoin Bill, One Step Closer to Issuance-OxBig News Network

Hong Kong’s legislature handed a stablecoin invoice on Wednesday that establishes a licensing regime for fiat-referenced stablecoin issuers in Hong Kong, offering regulatory readability for upcoming stablecoin issuers.

Under the brand new regime, any one that points stablecoins in Hong Kong – or points stablecoins backed by Hong Kong {dollars}, whether or not inside or outdoors town – should get hold of a licence from the Hong Kong Monetary Authority (HKMA), in keeping with a authorities press launch.

The invoice additionally units out necessities in areas akin to reserve asset administration, redemption, and danger administration, aiming to guard most people and buyers.

Hong Kong has been stepping up efforts to introduce a regulatory regime to develop its personal stablecoin, thereby enhancing town’s competitiveness as a worldwide digital asset hub.

Stablecoins, a kind of cryptocurrency designed to keep up a relentless worth, often pegged to a fiat forex akin to US greenback, are generally utilized by crypto merchants to maneuver funds between tokens.

“The Ordinance adheres to the ‘identical exercise, identical dangers, identical regulation’ precept, with a deal with a risk-based strategy to advertise a strong regulatory atmosphere,” mentioned Christopher Hui, town’s secretary for monetary providers and the treasury.

This lays a strong basis for Hong Kong’s digital asset market, he added.

Three members have joined a stablecoin issuer sandbox challenge launched by HKMA final 12 months.

The ordinance is anticipated to come back into impact inside this 12 months.

© Thomson Reuters 2025

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