Hong Kong Moves Closer to Legal Framework for Stablecoins

Hong Kong is working to regulate digital assets by incorporating stablecoins into the legal framework for the area.

Hong Kong Moves Closer To Legal Framework For Stablecoins

Hong Kong has made a significant stride in its efforts to regulate cryptocurrencies by introducing the Stablecoin Bill to the Legislative Council. The bill’s journey began on December 6, when it was published in the Official Gazette of the Special Administrative Region. On December 18, it was officially presented to the Legislative Council for its first reading.

Before becoming law, the draft will undergo three rounds of thorough scrutiny, including debates, reviews, and necessary amendments. Once it passes the final evaluation, the bill will be forwarded to the region’s Chief Executive for signing into law.

the draft will undergo three rounds of thorough scrutiny, including debates, reviews, and necessary amendments
The draft will undergo three rounds of thorough scrutiny, including debates, reviews, and necessary amendments

The bill focuses on three main pillars: licensing regulations for issuers, stablecoin issuance processes, and user protection measures along with marketing guidelines. Once enacted, any organization wishing to issue stablecoins in Hong Kong must obtain a license from the Hong Kong Monetary Authority (HKMA). To qualify, issuers must meet stringent requirements regarding competency, reserve assets, and price stabilization mechanisms.

Related: Hong Kong Exempts Crypto Taxes, Following Donald Trump’s Lead

This bill could bring transformative changes to the market, akin to the impact of MiCA regulations in Europe. According to a December 18 report by research firm Kaiko and exchange Bitvavo, MiCA has dramatically reshaped the stablecoin landscape in Europe. While issuers like Tether have withdrawn from Euro-denominated stablecoin issuance, MiCA-compliant organizations have thrived. By November 2024, three entities—Circle, Societe Generale, and Banking Circle—held 91% of the MiCA-compliant stablecoin market share.

Love

0.0/5

Love

Latest

Bitcoin Boom Ahead Institutional And Derivatives Data Reveal

News | Bitcoin | Editor Choice

Bitcoin Boom Ahead? Institutional and Derivatives Data Reveal

Market experts believe that Bitcoin (BTC) is in a phase of accumulation rather than topping, predicting a retest before the next explosive breakout.

Bnb Super Cycle – A Massive Rally Or Binance’s Next Big Bubble

News | Altcoin | Editor Choice

BNB Super Cycle – A Massive Rally or Binance’s Next Big Bubble?

Binance’s BNB token is heating up the crypto market with a series of new record highs, but amid the excitement of the so-called “Super Cycle,” many analysts warn it could just be a bubble waiting to burst.

Bitcoin Cools Off After Record Breaking Rally

News | Bitcoin | Editor Choice

Bitcoin Cools Off After Record-Breaking Rally

After a series of record-breaking gains, Bitcoin suddenly slipped more than 2% on Tuesday afternoon as a wave of profit-taking spread and investor caution returned to the crypto market.

Aster Accused Of Inflating Trading Volume, Token Price Drops 10%

News | Altcoin | Editor Choice

Aster Accused of Inflating Trading Volume, Token Price Drops 10%

The decentralized exchange Aster is facing heated controversy after being accused by DefiLlama of fabricating trading volume, causing the ASTER token to plunge sharply.

Bnb Price Surges Toward $2,000 Amid Altcoin Season Boom

News | Altcoin | Editor Choice

BNB Price Surges Toward $2,000 Amid Altcoin Season Boom

BNB continues to set new records as the altcoin season ignites, with investors eyeing the $2,000 milestone amid a wave of market optimism.

Screenshot 2025 09 10 100533