Hong Kong Approves Stablecoin Bill, Licensing to Start by Year-End

Hong Kong’s Legislative Council has passed the Stablecoin Bill in its third reading, setting the stage for major financial institutions to seek licensing from the Hong Kong Monetary Authority for stablecoin issuance by the end of 2024.

Legislative Council member Johnny Ng Kit-Chong highlighted the bill’s significance in a social media post, framing it as a pivotal step for global Web3 advancement. "This positions Hong Kong as a future leader in Web3 innovation," Ng stated, emphasizing the city’s commitment to fiat-backed stablecoins.

The regulatory clarity is expected to attract global stablecoin issuers, with Ng offering to facilitate connections for Web3 development across Asia. Market observers anticipate increased institutional crypto activity through Hong Kong’s regulated framework.