2025-05-23
On May 21, 2025, the Hong Kong
Legislative Council passed the Stablecoins Bill, establishing a licensing
regime for fiat-referenced stablecoin (FRS) issuers.
This move aims to enhance financial
stability and encourage innovation in the digital asset sector.
For licensing requirement, entities
issuing FRS in Hong Kong or those referencing the Hong Kong dollar, even if
issued abroad, must obtain a license from the Hong Kong Monetary Authority
(HKMA).
Licensed issuers are mandated to
maintain reserve asset management, ensure redemption at par value, segregate
client assets, and comply with anti-money laundering and counter-terrorist
financing regulations.
Only licensed FRS issuers are permitted
to advertise their products to the public, aiming to prevent fraud and protect
investors.
The ordinance includes a six-month
grace period to allow existing issuers to comply with the new regulations.
The HKMA will conduct further
consultations to detail specific regulatory requirements, ensuring a
comprehensive framework that aligns with international standards.
This legislative development positions
Hong Kong alongside other jurisdictions like the European Union, the U.S., and
the U.K., which are also establishing regulatory frameworks for stablecoins.
