Hong Kong passes stablecoin bill, set to open licensing by year-end
Hong Kong's Legislative Council has passed the Stablecoin Bill, establishing a regulated framework for digital assets and Web3 development. The bill's third reading was completed on May 21, allowing major institutions to apply for stablecoin issuer licenses from the Hong Kong Monetary Authority by year-end. Stablecoins must be backed by fiat currency under the new legislation. The initiative aims to attract global enterprises to Hong Kong and enhance Web3 infrastructure. Legislative Council member Johnny Ng Kit-Chong emphasized that stablecoin adoption could drive innovation in retail payments, cross-border trade, and peer-to-peer transactions. He advocates for yield-bearing stablecoins to increase competitiveness and market share, noting their rise to $11 billion in circulation, representing 4.5% of the total stablecoin market.
