Hong Kong Accelerates Stablecoin Institutionalization... "License System to be Implemented Within the Year"

Hong Kong's move to institutionalize stablecoins is gaining momentum. It is expected that a licensing system for stablecoin issuers will be implemented within the year.

On the 21st (local time), Johnny Ng, a member of the Hong Kong Legislative Council, announced on X (formerly Twitter) that "after the third review, the Legislative Council of the Hong Kong Special Administrative Region has finally passed the 'Stablecoin Ordinance Draft'" and "by the end of this year, major institutions will be able to apply for a legal stablecoin issuance license from the Hong Kong Monetary Authority (HKMA)." He further stated, "Hong Kong welcomes applications from companies and institutions wishing to issue stablecoins and will lead the development of Web3 worldwide centered around Hong Kong."

He particularly emphasized that the passage of this bill is only the first step in building Web3 infrastructure in Hong Kong. He said, "Issuing stablecoins is just the beginning," and "the most important thing is to create use cases. There is tremendous potential for stablecoin adoption in real-world transactions, cross-border transactions, and more." He added, "We will actively support the distribution of interest income to stablecoin holders to enhance competitiveness and expand overall market share."