On May 21, according to the Voice of the Greater Bay Area, the Legislative Council of the Hong Kong Special Administrative Region passed the "Stablecoin Bill", which was welcomed by the Hong Kong SAR government. The Bill establishes a licensing regime for fiat stablecoin issuers in Hong Kong to improve the regulatory framework for virtual asset activities in Hong Kong, with a view to maintaining financial stability and promoting financial innovation.
Hong Kong Legislative Council member Wu Jiezhuang stated that today marks a milestone in the global development of Web3 and is an important step for Hong Kong to become an international Web3 hub. Industry insiders also indicate that Hong Kong is entering a critical period for the explosive growth of stablecoins.
After the implementation of the Stablecoins Ordinance, any person who issues fiat currency stablecoins in Hong Kong in the course of business, or fiat currency stablecoins in or outside Hong Kong that claim to be pegged to the value of Hong Kong dollars, must apply for a licence from the Monetary Authority. Relevant persons are required to comply with reserve asset management and redemption requirements, including proper segregation of client assets, maintenance of robust stability mechanisms, and the processing of redemption requests of stablecoin holders at par under reasonable conditions. Relevant persons are also required to comply with a series of AML/CFT, risk management, disclosure requirements, and audit and fit and proper requirements. The Monetary Authority will make further consultations on the detailed regulatory requirements of the regime in due course.
Mr Ng said that he was honored to share with you that the Legislative Council of the Hong Kong Special Administrative Region has passed the Stablecoin Bill in the third reading today, and believes that by the end of this year, major institutions can apply to the Hong Kong Monetary Authority to become compliant stablecoin issuers. Hong Kong stablecoins are based on fiat currencies as the underlying assets, and we welcome enterprises and institutions from all over the world who are interested in issuing stablecoins to apply in Hong Kong.
The legislation was passed today, it's just the first step for Web3 infrastructure. I hope we can continue to work together on a few points:
Create application scenarios: The issuance of stablecoins is the first step, and the most important thing is to create more application scenarios for stablecoins. Whether it is in physical retail, cross-border trade, trading pairs, etc., I believe there is great potential and opportunity to realize stablecoin applications. I urge friends from various industries in traditional and physical sectors to understand and embrace stablecoins, as this will be an important financial innovation.
Improve the stable market attributes, including releasing stablecoin interest to holders. Releasing interest helps strengthen the market competitiveness of stablecoins and provides incentives for more individuals to participate, thereby increasing the overall market share of stablecoins. This is beneficial for the development of stablecoins.
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Hong Kong stablecoin boom
On May 21, according to the Voice of the Greater Bay Area, the Legislative Council of the Hong Kong Special Administrative Region passed the "Stablecoin Bill", which was welcomed by the Hong Kong SAR government. The Bill establishes a licensing regime for fiat stablecoin issuers in Hong Kong to improve the regulatory framework for virtual asset activities in Hong Kong, with a view to maintaining financial stability and promoting financial innovation.
Hong Kong Legislative Council member Wu Jiezhuang stated that today marks a milestone in the global development of Web3 and is an important step for Hong Kong to become an international Web3 hub. Industry insiders also indicate that Hong Kong is entering a critical period for the explosive growth of stablecoins.
After the implementation of the Stablecoins Ordinance, any person who issues fiat currency stablecoins in Hong Kong in the course of business, or fiat currency stablecoins in or outside Hong Kong that claim to be pegged to the value of Hong Kong dollars, must apply for a licence from the Monetary Authority. Relevant persons are required to comply with reserve asset management and redemption requirements, including proper segregation of client assets, maintenance of robust stability mechanisms, and the processing of redemption requests of stablecoin holders at par under reasonable conditions. Relevant persons are also required to comply with a series of AML/CFT, risk management, disclosure requirements, and audit and fit and proper requirements. The Monetary Authority will make further consultations on the detailed regulatory requirements of the regime in due course.
Mr Ng said that he was honored to share with you that the Legislative Council of the Hong Kong Special Administrative Region has passed the Stablecoin Bill in the third reading today, and believes that by the end of this year, major institutions can apply to the Hong Kong Monetary Authority to become compliant stablecoin issuers. Hong Kong stablecoins are based on fiat currencies as the underlying assets, and we welcome enterprises and institutions from all over the world who are interested in issuing stablecoins to apply in Hong Kong.
The legislation was passed today, it's just the first step for Web3 infrastructure. I hope we can continue to work together on a few points:
Create application scenarios: The issuance of stablecoins is the first step, and the most important thing is to create more application scenarios for stablecoins. Whether it is in physical retail, cross-border trade, trading pairs, etc., I believe there is great potential and opportunity to realize stablecoin applications. I urge friends from various industries in traditional and physical sectors to understand and embrace stablecoins, as this will be an important financial innovation.
Improve the stable market attributes, including releasing stablecoin interest to holders. Releasing interest helps strengthen the market competitiveness of stablecoins and provides incentives for more individuals to participate, thereby increasing the overall market share of stablecoins. This is beneficial for the development of stablecoins.