Hong Kong Passes Stablecoin Bill Under New Regulatory Framework

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Hong Kong has officially passed the Stablecoin Bill in its third reading. This landmark legislation opens the door for regulated stablecoin issuance and aligns digital assets with traditional finance under a clear regulatory framework.

Hong Kong Greenlights Regulated Stablecoin Issuance

The Hong Kong Legislative Council has approved the Stablecoin Bill, marking a major milestone for crypto regulation in the region. The new law allows qualified institutions to apply for stablecoin licenses from the Hong Kong Monetary Authority (HKMA) starting later this year, with full implementation expected by the end of 2025.

Only stablecoins backed by legal tender will be eligible, ensuring transparency, accountability, and consumer protection in a rapidly growing market.

Hong Kong’s Vision to Become a Global Web3 Leader

Reacting to the bill’s passage, Johnny Ng Kit-chong, a member of the Legislative Council, called the move a major step in Hong Kong’s journey to becoming an international Web3 hub. He invited global fintech and crypto companies to apply for stablecoin licenses and participate in shaping the city’s blockchain-driven future.

Lawmaker Outlines Roadmap for Stablecoin Utility

Ng emphasized that licensing is only the beginning. He proposed boosting stablecoin adoption in:

Retail payments

Cross-border trade

Peer-to-peer transactions

He also floated the idea of distributing interest earnings to stablecoin holders as an incentive, aimed at increasing user engagement, competitiveness, and long-term growth.

Stablecoin Market Overview: Key Stats

The global stablecoin market continues to expand rapidly:

Total market cap: $247.36 billion

24-hour trading volume: $81.24 billion

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Top stablecoins by market cap include:

Tether (USDT) – $151.63B

USD Coin (USDC) – $60.50B

USDS – $7.02B

Ethena USDe – $5.02B

DAI – $3.69B

Tether remains the dominant force, ranking as the third-largest crypto asset after Bitcoin and Ethereum.

What This Means for Crypto and Global Finance

Hong Kong’s stablecoin regulation may spark a new wave of institutional participation in the crypto market. With a strong regulatory foundation, the city could serve as a bridge between traditional finance and blockchain innovation, making stablecoins more secure, trusted, and globally accepted.