Hong Kong Implements New Stablecoin Law, Ushering in a New Chapter for Crypto

Hong Kong has taken a significant step forward in regulating the cryptocurrency market with the adoption of a new stablecoin bill by the Legislative Council. This groundbreaking legislation blends traditional finance and cryptocurrencies under a unified framework. The law establishes that only stablecoins backed 1:1 by legal currencies will be eligible for licenses, which are expected to become fully operational at year’s end. This licensing program empowers the Hong Kong Monetary Authority (HKMA) to issue stablecoin licenses to financial institutions meeting specific criteria.