Hong Kong Joins Global Race With New Stablecoin Licensing Bill

Hong Kong handed a stablecoin invoice that can allow the area to determine 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.

Institutions are anticipated to have the ability to apply for a license from the Hong Kong Monetary 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 tips in direction of the finish of 2023. It later launched the Stablecoin Bill, which the Legislative Council of the Hong Kong Special Administrative Region handed in its third studying, Ng’s put up stated.

The area has been seeking to sustain with nations around the globe which were establishing their stablecoin regimes. The European Union began licensing stablecoin issuers final 12 months after passing its wide-ranging bespoke crypto invoice, referred to as the Markets in Crypto Assets regulation (MiCa). Meanwhile, the U.S. has a stablecoin invoice that’s passing by way of Congress, and the U.Okay. has been gathering suggestions on draft laws that can additionally have an effect on stablecoins.

The stablecoin sector has change into the most well liked development in recent times, with each crypto and TradFi companies ramping up their publicity to the business. Ben Reynolds, BitGo’s managing director of stablecoins, stated at Consensus 2025 that enormous banks are more and more taking discover of the business, largely out of concern that they’ll lose market share to the digital {dollars}.

Read extra: Banks Exploring Stablecoin Amid Fears of Losing Market Share, BitGo Executive Says