Hong Kong has passed a new stablecoin bill that will pave the way for creating a licensing framework for issuers of fiat-backed stablecoins. This move aligns Hong Kong with nations like the European Union, the U.K., and the U.S., which are also developing regulatory frameworks for stablecoins.

Key Points:

• The stablecoin bill was designed to allow global enterprises and institutions to issue stablecoins in Hong Kong, backed by fiat currency.
• The Hong Kong Monetary Authority is expected to start accepting applications for licenses by the end of the year.
• Hong Kong has been pursuing a stablecoin regulation strategy since 2023, having earlier released a consultation paper, followed by the Stablecoin Bill which was passed by the Legislative Council.

As part of its effort to stay competitive globally, Hong Kong aims to keep pace with countries establishing their own stablecoin regulations. Last year, the European Union began licensing stablecoin issuers through its Markets in Crypto Assets regulation. The US is advancing its own stablecoin bill in Congress, while the UK is receiving feedback on draft legislation related to stablecoins.

Quote: “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,” said Johnny Ng on X (formerly Twitter).

In recent years, the stablecoin sector has gained significant attention, as both traditional finance and crypto firms increase their involvement. Ben Reynolds, from BitGo, emphasized at Consensus 2025 that large banks are becoming more aware of this sector due to concerns of losing market share to emerging digital currencies.