Hong Kong’s legislature has approved a stablecoin bill, establishing a licensing framework for issuers of fiat-referenced stablecoins. This aims to provide regulatory certainty for the burgeoning stablecoin market.
The new law mandates that any entity issuing stablecoins within Hong Kong, or issuing Hong Kong dollar-backed stablecoins regardless of location, must obtain a license from the Hong Kong Monetary Authority (HKMA). This stringent requirement underscores Hong Kong’s commitment to overseeing and controlling stablecoin activities.
The bill also lays out specific criteria, ensuring responsible stablecoin issuance and safeguarding user interests. These measures signify a significant step towards integrating stablecoins into Hong Kong’s financial landscape under a well-defined regulatory umbrella.
