Hong Kong’s stablecoin law to take effect in August, building on virtual asset licensing

Hong Kong’s new stablecoin ordinance, which requires issuers of assets backed by fiat currency to be licensed, is set to take effect on August 1, according to a government announcement on Friday.

The city’s Legislative Council passed the bill regulating stablecoins – a type of cryptocurrency backed by a reference asset, usually fiat currencies such as the US and Hong Kong dollars – on May 21, but the government had not previously announced when it would take effect. The law requires a licence from the Hong Kong Monetary Authority to issue fiat-referenced stablecoins within the city or Hong Kong dollar-backed stablecoins anywhere.

“After the ordinance commences operation, the licensing regime will provide suitable guardrails for relevant stablecoin activities,” Treasury chief Christopher Hui Ching-yu said in a statement. “It will be a milestone in facilitating the sustainable development of the stablecoin and digital asset ecosystem in Hong Kong.”

The new regime gives Hong Kong one of the most comprehensive legal frameworks for stablecoins. It comes amid a global rush to regulate the digital assets that some fear could have destabilising effects on financial systems owing to the ease with which they allow money to cross borders. It also comes as US lawmakers continue to try to advance the stablecoin-focused Genius Act through Congress.

The stablecoin law is part of a broader effort by Hong Kong to become a cryptocurrency hub. Under a 2023 law regulating other virtual assets, crypto exchanges must be licensed by the Securities and Futures Commission. The government has said its next focus will be on regulating over-the-counter and custodian services for virtual assets.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Hong Kong’s education hub ambitions take centre stage in US, UK visits

Hong Kong’s education hub ambitions take centre stage in US, UK visits

The head of a committee overseeing funding for Hong Kong’s public universities has led a delegation to the United States and the United Kingdom to promote the city as a destination for higher education. James Tang Tuck-hong, secretary general of the University Grants Committee, attended a conference in San Diego, California, on May 25, before

7 June 2025
Retired Hong Kong priest arrested for alleged sexual assault of minor in 1990s

Retired Hong Kong priest arrested for alleged sexual assault of minor in 1990s

Hong Kong police have arrested a 66-year-old retired priest on suspicion of sexually assaulting a minor on two occasions more than 30 years ago, the Post has learned. A source said on Saturday that a woman, now 44, filed a police report late last month alleging she had been sexually assaulted twice at a church

7 June 2025
All nine victims have been sent to North Lantau Hospital for treatment. Photo: Winson Wong

9 injured in collision involving taxi, private car near Hong Kong Disneyland

Nine people, including a one-year-old girl, were injured after a taxi and a private car collided near Hong Kong Disneyland on Lantau Island on Saturday. The incident occurred at an intersection on Magic Road at 2.21pm, when the driver of the Kowloon-bound private car attempted to make a right turn at a junction before hitting

7 June 2025
Replacement work on water pipe that gave Hongkongers scare to begin this year

Replacement work on water pipe that gave Hongkongers scare to begin this year

Hong Kong will begin replacing a 400-metre (437 yards) section of water pipe lined with bitumen this year before carrying out citywide work, as it is believed to be the source of black particles dirtying the water at two public housing estates. Secretary for Development Bernadette Linn Hon-ho said on Saturday that the government would

7 June 2025
Secretary for Justice Paul Lam has the IOM convention is “very respectful of every sovereign country”. Photo: Jelly Tse

Hong Kong’s mediation centre could help solve territorial, sovereignty disputes

Hong Kong’s new global mediation centre can help resolve territorial or sovereignty disputes if participants are willing to come to the table, the city’s justice minister has said. Last month, Chinese foreign minister Wang Yi presided over a landmark signing ceremony for the establishment of the International Organisation for Mediation (IOMed) in the city. Thirty-three

7 June 2025
Hong Kong’s top judge urges new senior counsels to defend rule of law

Hong Kong’s top judge urges new senior counsels to defend rule of law

Hong Kong’s top judge has called for newly minted senior counsels to defend the rule of law when it is under threat and ensure “unimpeded” access to the city’s courts for every individual to safeguard public trust in the legal system. Secretary for Justice Paul Lam Ting-kwok, who spoke separately at the senior counsel admission

7 June 2025
Hong Kong constable’s condition improving after fall from bridge: police chief

Hong Kong constable’s condition improving after fall from bridge: police chief

The condition of a Hong Kong police officer who fell 10 metres (33 feet) off a bridge to escape a crash is improving after he underwent an operation, the force’s commissioner has said, adding that the man remains in an intensive care unit. Commissioner of Police Joe Chow Yat-ming on Saturday also expressed his gratitude

7 June 2025
0
Would love your thoughts, please comment.x
()
x