Hong Kong passes stablecoin bill amid global competition
Hong Kong has officially passed a new stablecoin bill, establishing a licensing regime for stablecoin issuers. The bill, approved on 21 May and focused on fiat-referenced stablecoins, will require stablecoin users to obtain a licence from the Hong Kong Monetary Authority.
Additionally, they will need to comply with a range of requirements, including proper management of asset reserves and segregation of client assets. It will “enhance Hong Kong’s existing regulatory framework on virtual-asset (VA) activities, thereby fostering financial stability and encouraging financial innovation,” the central banking body said. Further consultations on the detailed regulatory framework are to be conducted.
To come into effect this year
The Hong Kong government, in a statement, said that the stablecoins policy is expected to come into effect this year. This would allow the industry “sufficient time” to understand the requirements. Back in 2023, Hong Kong introduced its broader virtual asset licensing regime, requiring crypto firms with a presence in the city to register and meet compliance standards to serve retail customers. However, it did not include stablecoin in its purview.
As per the bill, stablecoin issuers will be mandated to meet requirements in areas like reserve asset management, redemption mechanisms, and client asset segregation. Moreover, maintaining robust systems to stabilise token value and comply with anti-money laundering standards, counter-terrorist financing, risk management and other regulatory requirements, are other key requirements.
“The Ordinance adheres to the ‘same activity, same risks, same regulation’ principle, with a focus on a risk-based approach to promote a robust regulatory environment,” said Christopher Hui, the Secretary for Financial Services and the Treasury. One of the lawmakers in the stablecoin bill committee, Johnny Ng, said on X that the passage of the stablecoin legislation is “just the first step in building Web3 infrastructure.”
今天是全球Web3發展的里程碑，也是香港成為國際Web3中心的重要一步。很榮幸和大家分享今天香港特別行政區立法會已經三讀通過<穩定幣條例草案>，相信在今年底前各大機構可以在香港向金融管理局申請成為合規穩定幣發行商。香港穩定幣是以法定貨幣為底層資產，我們歡迎全球有意發行穩定幣的企業和機構來港… pic.twitter.com/dVJ4NnnhWA
— Johnny Ng 吴杰庄 (@Johnny_nkc) May 21, 2025
