Hong Kong passes Stablecoins Bill in digital asset hub boost

The Hong Kong government has welcomed the passage of the Stablecoins Bill by the Legislative Council on May 21 to establish a licensing regime for fiat-referenced stablecoins FRS issuers in the Special Administrative Region SAR. 

The Bill will enhance Hong Kong’s regulatory framework on virtual-asset VA activities, and is aiming to foster financial stability and to encourage financial innovation.

Upon implementation of the Stablecoins Ordinance, any person who, in the course of business, issues an FRS in Hong Kong, or issues an FRS that purports to maintain a stable value with reference to Hong Kong dollars in or outside Hong Kong will need to obtain...