Overview

• Hong Kong's Legislative Council passed a bill requiring stablecoin issuers to obtain a licence from the Hong Kong Monetary Authority (HKMA).
• The law applies to issuers of stablecoins backed by Hong Kong dollars, regardless of where the issuer is based.
• The framework includes requirements for reserve asset management, redemption processes, and risk management to protect investors.
• Only licensed issuers will be allowed to advertise stablecoins to the public under the new regime.
• HKMA will conduct further consultations on operational details, including reserve requirements, client asset segregation, and disclosure obligations, before implementation later this year.