Hong Kong Passes Law to Regulate Fiat-Pegged Stablecoins

Hong Kong adopted legislation on Wednesday, creating a licensing regime for stable stable stations referentially, progressing his goal of becoming a digital center of assets, responding to concern for the protection of investors and financial stability.

New law, passed The City Legislative Council requires the issuer of the FRS to receive a license from the Hong Kong Monetary Authority (HKMA).

Licensia must be in accordance with a series of requirements that cover the management of spare assets, redemption by nominal value, segregation of client funds, money laundering controls, publication and standards for fitness and suitability.

“The Ordinance adheres to” the same activity, the same risks, the principles of the same regulation “, with an emphasis on the risk -based approach to promote a strong regulatory environment,” said Christopher Hui, Secretary for Financial Services and Treasury, UAA said statement.

“This is not only in accordance with international regulatory requirements, but is also a solid foundation for the Hong Kong virtual property market,” he added.

Hugging crypto

The law is part of Hong Kong’s effort to rehabilitate its crypto reputation and encourages the growth of industry after collapse False exchange of JPEX 2023.

Setting just as Hong Kong turned to accepting cryptocurrencies after years of hesitation, the authorities are now trying to establish a difficult balance between stimulating innovation in digital assets, ensuring that the investors of retail protection against abuse.

According to the new regime, only licensed institutions can be issued by the FRS in Hong Kong, and only licensed offers can be placed on retail investors.

Unauthorized advertisements will be banned, even during a six -month period before the implementation begins. HKMA will continue to advise on detailed requirements.

The market for Stabiklene in Hong Kong remains modest compared to global quantities.

“The new account gives the publishers something tangible: clarity on licensing, redemption obligations, spare requirements and framework that is friendly according to traditional finances,” said Justin D’Anethan, head of sales at the Token Liquifi Counseling Company, he said, said Decipher. “But let’s be honest, Hong Kong is still a smaller knot in a global stable activity.”

Tether is still preferred cryptocurrencies in numerous OTC stores Hong Kong. At the same time, assets with the US market supported by US markets remains a leading force in the Stablecoin sector around the world.

Hong Kong’s legislation comes while the US Senate progresses its own proposal for the Stabil Act. The law of genius, which has been lately cutaway The key procedural vote, would create a legal framework throughout the country to issue stable views in the United States. The law must continue to pass home before reaching President Trump, who is expected to sign him into law.

“For a while, Hong Kong, Singapore, and in some extent Dubai, kept the crown when it came to the crypto policy that left forward. But for the last six months, it has shifted the script,” D’Anethan said. “Now, long seen as opponent, he became an unexpected epicenter pro-Crypto of the regulatory swing.”

Hong Kong is expected to enter into force later this year, with transitional provisions to help publishers adapt to the new regime.

Edited Sebastian Sinclair