Hong Kong Passes Stablecoins Bill for Stronger Regulation
The post Hong Kong Passes Stablecoins Bill for Stronger Regulation appeared on BitcoinEthereumNews.com.
Hong Kong’s Stablecoins Bill introduces a licensing regime for stablecoin issuers. Only licensed institutions can issue FRS in Hong Kong, enhancing investor protection. Stablecoins Ordinance takes effect this year, with a transitional period for businesses. The Legislative Council of Hong Kong has enacted the Stablecoins Bill, which will govern fiat-referenced stablecoins (FRS). Under this legislation, issuers of virtual asset (VA) products will be required to apply for licenses to help tighten regulations in Hong Kong. The bill aims to boost financial stability and encourage new ideas in the virtual asset area, placing Hong Kong at the forefront of global digital finance regulation. Under this new regulation, any organization issuing an FRS in Hong Kong or linking it to the Hong Kong dollar needs to be licensed by the Monetary Authority (MA). Issuers will be required to properly handle and separate client funds as required by the rules. They will also need to create a solid method to maintain the value of the stablecoin. Tighter Regulations for Hong Kong Stablecoins The introduction of these new rules should increase protections for everyone. Institutions must have a valid license to issue FRS in Hong Kong, and such operators will be the only ones permitted to provide stablecoins to retail investors. The advertising of FRS is also controlled by law, allowing only licensed groups to publicize their stablecoins. This part exists to deter fraud and reduce the risk of scams affecting the market. Mr Christopher Hui, the Secretary for Financial Services and the Treasury, highlighted that the Ordinance uses the principle “same activity, same risks, same regulation.” The aim is to establish a regulatory system based on risk that is flexible and easy to understand and aligns with global standards. As a result, Hong Kong’s virtual asset sector will continue to improve and enhance…
Filed under: News - @ May 22, 2025 1:28 am