Hong Kong passes the Stablecoin Bill, which is set to open licensing by the end of the year
The legal council of Hong Kong passed the Stablecoin Bill, which paved the way for a regulated framework that could position the region as a global leader in digital assets and web3 development.
On one May 21 Post In X, members of the legislative council Johnny of Kit-Chong said the bill passed its third reading, cleaning the final obstruction for adoption.
“It is hoped that by the end of this year, the major institutions can apply to the Hong Kong Monetary Authority to be a Licensed Stablecoin issues,” Ng said.
According to In the new law of Hong Kong, Stablecoins It is necessary to be back through Fiat Currency as grounded by the owners. Ng said that Hong Kong accepts the “Global Enterprises and Institutions that are interested in issuing Stablecoins to apply to Hong Kong,” which offers to personally assist in the introductions and cooperation:
“I’m also happy to facilitate connections and cooperate with all stakeholders to advance the web3 development in Asia and around the world, with Hong Kong in the middle.”
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Hong Kong aims to be a web3 powerhouse
NG said that the law marked the first step on the road to the development of the web3 infrastructure in Hong Kong. “The most important step is to develop more applications in the world.”
NG said that Stablecoin adoption has the potential to drive a change in retail payments, cross-border transactions and peer-to-peer transactions.
He added that he encourages the development and adoption of Stablecoins, because “they represent a major financial innovative.” Regarding the enhancement of market stability, NG has suggested the distribution of interest revenues to Stablecoin holders.
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Interest for stablecoin holders
According to NG, “giving interest will strengthen the competitiveness of stablecoins.” This increased competition, he explained, implies greater participation and expands of Stablecoin market sharing, which supports what he views as sustainable growth.
Ng’s statements that produce stablecoins are more competitive to follow recent positive data. Research indicates that Ani-Bearing stables have risen to $ 11 billion In circulation, which represents 4.5% of the total Stablecoin market, a steep climbing from just $ 1.5 billion and a 1% part of the market at the start of 2024.
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