Hong Kong is poised for a major shift in its cryptocurrency landscape following the Legislative Council’s approval of new stablecoin legislation. This landmark decision aims to bridge the gap between traditional finance and the world of cryptocurrencies, bringing stability and regulation to the burgeoning sector. Under this framework, licenses will only be issued to stablecoins backed by legal currencies with a 1:1 ratio, expected to be fully operational before the year’s end. The new law empowers the Hong Kong Monetary Authority (HKMA) to grant these licenses to financial institutions that meet strict requirements. Applications are anticipated to open later this year with full activation shortly after.