Hong Kong approved a Stablecoin bill that will allow the region to establish a license regime for stablecoin issuers backed by Fiat.
“The stable of Hong Kong are backed by the fiduciary currency as underlying assets, and we welcome global companies and institutions interested in issuing Stablecoins to run in Hong Kong,” said the member of the Johnny Ng Legislative Council on X on Wednesday.
Institutions are expected to request a license from Hong Kong’s monetary authority for the end of the year.
Hong Kong has been working on the establishment of a Stablecoin regime since 2023. The Nation had published a consultation document on the Stablecoin guidelines towards the end of 2023. Later he introduced the Stablcoin bill, which the Legislative Council of the Special Administrative Region of Hong Kong approved in his third reading, said the position of NG.
The region has been looking to keep up with nations around the world that have been establishing their Stablecoin regimes. The European Union began to license Stablecoin issuers last year after approving its broad project of custom cryptography, called markets in the regulation of Assets Crypto (Mica). Meanwhile, the United States has a Stablcoin bill that is going through Congress, and the United Kingdom has been collecting comments on the bill that will also affect Stablecoins.
The Stablecoin sector has become the most popular trend in recent years, with cryptographic and traditional companies increasing its exposure to the industry. Ben Reynolds, Managing Director of Bitgo de Stablecoins, said in consensus 2025 that the big banks are increasingly realized in the industry, largely for fear of losing the market share for digital dollars.
Read more: Banks exploring Stablecoin in the midst of fears of losing market share, says Bitgo’s executive