Hong Kong Sets Stablecoin Regulation Standard With A7A5 Launch

Hong Kong has passed legislation regulating fiat-backed stablecoins, a move signaling the region’s growing embrace of digital currencies and formalization of their standards. The new bill, which was approved by the Hong Kong Legislative Council, introduces a legal framework for stablecoin issuers operating in the city. Under this framework, only fiat-backed stablecoins will be permitted—algorithmic models are explicitly excluded due to concerns over their volatility and lack of transparency.