Hong Kong Legislative Council Approves Stablecoin Bill for Institutional Licenses
The Hong Kong Legislative Council has passed the “Stablecoins Bill,” allowing institutions to apply for stablecoin issuance licenses from the Hong Kong Monetary Authority (HKMA) by year-end. This follows the advancement of the US GENIUS Act in the Senate.
The new framework enables firms to issue Hong Kong stablecoins backed by fiat currency, ensuring regulatory standards and market confidence. Authorities are inviting global enterprises to participate in this initiative. Christopher Hui, Secretary for Financial Services and the Treasury, highlighted that this aligns with international regulations and strengthens Hong Kong’s position as a financial center.
Focus Areas for Stablecoin Ecosystem Growth
- Expanding Real-World Applications: The goal is to develop practical use cases in retail, cross-border trade, and peer-to-peer transactions, encouraging traditional businesses to adopt stablecoins.
- Strengthening Market Stability: Measures such as interest earnings for stablecoin holders aim to enhance competitiveness and promote wider adoption.
This legislative progress marks Hong Kong's commitment to advancing Web3 innovation. The move follows the Securities and Futures Commission's recent introduction of new regulations for cryptocurrency staking services, balancing innovation with investor protection.