Hong Kong officially enacts Stablecoin Bill introducing an 'issuance license system'

Hong Kong has officially introduced a regulatory framework for the issuance of fiat-backed stablecoins. To issue such tokens, obtaining a license from the Hong Kong Monetary Authority (HKMA) is mandatory, and issuers must strictly comply with requirements such as asset management and anti-money laundering.

According to CCTV on the 1st, the Hong Kong government officially implemented the 'Stablecoin Bill' starting today. This bill establishes a formal licensing regime for stablecoin issuers and strengthens the regulatory system covering all virtual asset activities.

Under the bill, any entity wishing to issue fiat-backed stablecoins within Hong Kong or to issue stablecoins claiming to be pegged to the Hong Kong Dollar (HKD) either inside or outside Hong Kong, must obtain a license from the Hong Kong Monetary Authority.

Licensed issuers must meet a series of requirements such as ▲segregation of client assets ▲maintenance of a stable pegging mechanism ▲fulfillment of redemption obligations under normal conditions. Additional requirements include anti-money laundering (AML) and counter-financing of terrorism (CFT) measures, risk management, information disclosure, accounting audits, and eligibility criteria for executives.