Hong Kong Passes Stablecoin Bill to License Fiat-Backed Issuers

Hong Kong has enacted a stablecoin bill to create a licensing regime for fiat-backed stablecoin issuers.

Stablecoins will be backed by fiat currency.
Institutions can apply for licenses from the Hong Kong Monetary Authority by year-end.
The region has been developing its stablecoin framework since 2023, following a consultation paper on guidelines.
The Stablecoin Bill passed its third reading in the Legislative Council.
Global interest in issuing stablecoins in Hong Kong is encouraged.

Other regions are also progressing with stablecoin regulations. The European Union began licensing stablecoin issuers last year. The U.S. is advancing a stablecoin bill in Congress, while the U.K. is gathering feedback on draft legislation affecting stablecoins.

Interest in the stablecoin sector is increasing, with traditional finance firms recognizing the potential risks of losing market share to digital currencies.