Hong Kong Legislature Passes Stablecoins Bill Under New Regulation

Hong Kong’s Legislative Council has formally enacted a stablecoin bill, establishing a comprehensive licensing framework for issuers of fiat-referenced stablecoins operating within the jurisdiction.

Under the new rules, any company that issues stablecoins in Hong Kong or stablecoins tied to the Hong Kong dollar, regardless of where they are located, must get a license from the Hong Kong Monetary Authority (HKMA).

The law also sets clear rules for managing reserve funds, redemptions, and risks. These rules are made to protect the public and investors, creating a safe and clear place for stablecoin deals.

“We believe that a robust and fit-for-purpose regulatory environment would provide favourable conditions to support the healthy, responsible, and sustainable development of Hong Kong’s stablecoin and the broader digital asset ecosystem,” HKMA CEO Eddie Yue states.

Hong Kong Creates Stablecoin Regulations

Hong Kong’s active step in setting up a strong set of rules shows a plan to grow its stablecoin system. This will boost the city’s place worldwide, draw in new financial tech companies, and help the digital asset area grow safely.

Stablecoins, cryptocurrencies designed to stay at a stable value, usually tied to a regular currency like the U.S. dollar, have become essential for cryptocurrency traders. They are an easy way to move money between digital tokens, allowing for quick and easy trading.

Christopher Hui, the Secretary for Financial Services and the Treasury, said the main idea behind the law is that “the same activity, the same risks, should have the same rules.” He added that the rules use a risk-based approach to create a strong system that supports new ideas while reducing possible risks.

Notably, the new Stablecoins Bill states that all companies issuing stablecoins tied to regular currencies in Hong Kong must have a license. Any business issuing stablecoins linked to the Hong Kong dollar or operating in the city must get a permit from the HKMA.

Licensed issuers will face strict rules for managing reserves, ensuring redemptions are at face value, keeping client assets separate, and following strong anti-money laundering (AML) standards, risk management, clear disclosure, and auditing.

US Senate Passes Stablecoin Regulation

Meanwhile, CoinTab reported yesterday that the United States Senate passed the GENIUS Act of 2025, making progress in regulating digital assets. The vote of 66-32 shows that both parties want to set up rules for stablecoins, which could change how cryptocurrency works in the US.

Despite disagreements, the GENIUS Act garnered bipartisan support. Following revisions that addressed ethical concerns and potential conflicts of interest, some Democratic senators voted for the bill, demonstrating their willingness to negotiate and find common ground.