Hong Kong Enacts Stablecoin Regulation to Enhance Digital Asset Oversight

According to Odaily, the Hong Kong Special Administrative Region Government has officially enacted the Stablecoin Ordinance, as published in the Gazette on May 30. This development marks a significant step in refining Hong Kong's regulatory framework for digital asset activities. The Legislative Council of Hong Kong passed the bill on May 21, establishing a licensing system for issuers of fiat-backed stablecoins. Under the new ordinance, only designated licensed institutions are permitted to sell fiat-backed stablecoins in Hong Kong. Furthermore, only stablecoins issued by licensed issuers can be sold to retail investors. The Hong Kong Monetary Authority has issued a reminder that the Stablecoin Ordinance will come into effect later this year, and no licenses have been granted to stablecoin issuers as of now. The public is advised to carefully verify information related to fiat-backed stablecoins and remain vigilant against fraudulent schemes that may use false advertising to deceive investors.