Hong Kong Advances Stablecoins Bill in Legislative Council

Hong Kong’s proposed Stablecoins Invoice has moved ahead within the Legislative Council, signaling progress towards a structured regulatory framework for stablecoins within the area.

Hong Kong’s proposed Stablecoins Invoice has moved ahead within the Legislative Council, signaling progress towards a structured regulatory framework for stablecoins within the area.

To safe this license, issuers will endure an analysis course of that assesses their controllers, assets, and the mechanisms used to stabilize the worth of their stablecoins.

Solely entities that meet regulatory requirements can be permitted to situation or market stablecoins to the general public.

Client protections outlined within the invoice purpose to safeguard varied market individuals, together with stablecoin issuers and distributors. This legislative effort displays a broader pattern noticed in Europe following the implementation of the Markets in Crypto-Belongings (MiCA) rules.

Analysis from Kaiko and crypto trade Bitvavo signifies that the MiCA framework has considerably reworked the European stablecoin market, with compliant issuers gaining substantial market share.

By late 2024, MiCA-compliant stablecoins had been reported to regulate roughly 91% of the market, following the discontinuation of non-compliant choices like Tether’s euro-backed stablecoin.

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