Hong Kong has approved the Stablecoin Law, which will enable the region to create a license system for FIT -backed Stablecoin.
“Stablecoins is supported in Hong Kong through Fiat Currency as basic assets, and we welcome global institutions and institutions interested in issuing Stablecoins for progress in Hong Kong,” Legislative Council member Johnny Ng He said on x Wednesday.
Institutions are expected to be able to apply for a license from the Hong Kong Monetary Authority by the end of the year.
Hong Kong has been creating a Stablecoin System since 2023. The nation has published a consulting paper on Stablecoin’s guidelines towards The end of 2023. Later on the STABLECOIN Law, which was issued by the Legislative Council for the Hong Kong Administrative Zone in its third reading.
The region is looking to keep pace with countries around the world that creates their Stablecoin systems. The European Union began to license Stablecoin last year After passing the detailed encryption bill on a wide scale, it is called markets in regulating encryption assets (MICA). Meanwhile, the United States has a Stablecoin bill Pass Congress, the United Kingdom brings together reactions to the legislation project that will It also affects stablecoins.
The Stablecoin sector has become the hottest trend in recent years, as Crypto and Trafi are discovered by the industry. Ben Reynolds, the administrative director of BITGO at Stablecoins, said in consensus 2025 that large banks are increasingly noticing this industry, and to a large extent that it will lose its market share for the digital dollar.
Read more: Bitgo Executive says that banks that explore Stablecoin amid fears of losing their market share
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