Hong Kong has enacted a new law regulating stablecoins, marking a significant development in the regulatory landscape for digital assets globally. This legislation establishes a licensing regime for fiat-referenced stablecoins, overseen by the Hong Kong Monetary Authority (HKMA), and introduces robust measures to ensure financial stability. 🤝 The Stablecoins Bill requires all issuers of these digital currencies to obtain licenses, outlining specific reserve asset requirements and redemption guarantees. While no licenses have been issued yet, consultation with stakeholders is ongoing. This legislation aims to balance innovation in the digital asset space with consumer protection, aiming to further solidify Hong Kong’s position as a global leader in financial technology.