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 forex as underlying property, and we welcome international enterprises and establishments excited about issuing stablecoins to use in Hong Kong,” legislative council member Johnny Ng mentioned 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 printed a session paper on stablecoin pointers in direction of the tip of 2023. It later launched the Stablecoin Invoice, which the Legislative Council of the Hong Kong Particular Administrative Area handed in its third studying, Ng’s submit mentioned.
The area has been seeking to sustain with nations all over the world which have been establishing their stablecoin regimes. The European Union began licensing stablecoin issuers final 12 months after passing its wide-ranging bespoke crypto invoice, known as the Markets in Crypto Property regulation (MiCa). In the meantime, the U.S. has a stablecoin invoice that’s passing by means of Congress, and the U.Ok. has been gathering suggestions on draft laws that may even have an effect on stablecoins.
The stablecoin sector has grow to be the most well liked pattern lately, with each crypto and TradFi corporations ramping up their publicity to the business. Ben Reynolds, BitGo’s managing director of stablecoins, mentioned at Consensus 2025 that giant banks are more and more taking discover of the business, largely out of worry that they’ll lose market share to the digital {dollars}.
Learn extra: Banks Exploring Stablecoin Amid Fears of Shedding Market Share, BitGo Govt Says
