The Hong Kong government has successfully passed a bill that paves the way for a licensing system to be established for issuers of stablecoins backed by traditional currencies. According to Legislative Council member Johnny Ng, "Hong Kong's stablecoins are supported by fiat currency, and we invite international companies and institutions to apply for stablecoin issuance licenses in our region." Institutions are anticipated to be able to submit license applications to the Hong Kong Monetary Authority before the end of the year. Hong Kong initiated efforts to develop a stablecoin regulatory framework in 2023, releasing a consultation paper on stablecoin guidelines later that year. Following this, the Stablecoin Bill was introduced and has now been passed by the Legislative Council of the Hong Kong Special Administrative Region.
The region aims to keep pace with other nations that have already implemented their own stablecoin regulations. For instance, the European Union began issuing licenses to stablecoin issuers last year after enacting its Markets in Crypto Assets regulation, while the United States has a stablecoin bill currently under review in Congress, and the United Kingdom is gathering feedback on draft legislation that will impact stablecoins. The stablecoin industry has gained significant traction in recent years, with both cryptocurrency and traditional financial firms expanding their involvement in the sector.
At Consensus 2025, BitGo's Managing Director of Stablecoins, Ben Reynolds, noted that major banks are taking notice of the industry due to concerns about losing market share to digital currencies.