Hong Kong Joins Global Race With New Stablecoin Licensing Bill

3 weeks ago

Hong Kong has been moving connected establishing a stablecoin authorities since 2023.

Updated May 21, 2025, 5:31 p.m. Published May 21, 2025, 5:29 p.m.

Hong Kong passed a stablecoin measure that volition alteration the portion to found a licensing authorities for fiat-backed stablecoin issuers.

"Hong Kong’s stablecoins are backed by fiat currency arsenic underlying assets, and we invited planetary enterprises and institutions funny successful issuing stablecoins to use successful Hong Kong," legislative assembly subordinate Johnny Ng said connected X connected Wednesday.

Institutions are expected to beryllium capable to use for a licence from the Hong Kong Monetary Authority by the year-end.

Hong Kong has been moving connected establishing a stablecoin authorities since 2023. The federation had published a consultation insubstantial connected stablecoin guidelines towards the end of 2023. It aboriginal introduced the Stablecoin Bill, which the Legislative Council of the Hong Kong Special Administrative Region passed successful its 3rd reading, Ng's station said.

The portion has been looking to support up with nations astir the satellite that person been establishing their stablecoin regimes. The European Union started licensing stablecoin issuers last year aft passing its wide-ranging bespoke crypto bill, called the Markets successful Crypto Assets regularisation (MiCa). Meanwhile, the U.S. has a stablecoin measure that is passing done Congress, and the U.K. has been gathering feedback connected draught authorities that volition also impact stablecoins.

The stablecoin assemblage has go the hottest inclination successful caller years, with some crypto and TradFi firms ramping up their vulnerability to the industry. Ben Reynolds, BitGo's managing manager of stablecoins, said astatine Consensus 2025 that ample banks are progressively taking announcement of the industry, mostly retired of fearfulness that they volition suffer marketplace stock to the integer dollars.

View source