• About Us
  • Careers
  • Contact
No Result
View All Result
Saturday, July 5, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home News

Hong Kong Approves Stablecoins Licensing Bill

21 May 2025
in News
Reading Time: 3 mins read
103 7
source: theblock.co

source: theblock.co

Hong Kong has taken a major step forward in regulating digital finance with the Legislative Council’s passage of the Stablecoins Bill, introducing a formal licensing framework for fiat-referenced stablecoin (FRS) issuers.

The new legislation, welcomed by the government on Wednesday, is designed to enhance the city’s virtual asset regulatory environment, striking a balance between financial innovation and systemic stability. Under the soon-to-be-implemented Stablecoins Ordinance, any entity issuing a stablecoin pegged to fiat currencies—including the Hong Kong dollar—will be required to obtain a license from the Hong Kong Monetary Authority (HKMA).

Hong Kong has passed its Stablecoins Bill, creating a licensing regime for fiat-backed stablecoin issuers under the HKMA.🏦🇭🇰

The law sets strict rules on reserves, redemption, and AML, as the city races to lead in global Web3 finance.⚖️ pic.twitter.com/Rt1vCKyHZ3

— Moby Media (@mobymedia) May 21, 2025

The licensing regime will impose strict requirements around reserve asset management, redemption mechanisms, risk controls, and consumer protection. Issuers must demonstrate robust systems for asset segregation, maintain a stable value mechanism, and ensure retail redemption at par value under reasonable conditions. Additional compliance rules cover anti-money laundering (AML), counter-terrorist financing, disclosure, auditing, and fit-and-proper standards for operators.

The law also limits stablecoin promotions to licensed issuers only, curbing the risk of scams and unregulated offerings. Retail investors will only be allowed access to FRS issued by licensed firms. A six-month transition period will allow the industry to adapt and prepare licensing applications.

Christopher Hui, Secretary for Financial Services and the Treasury, emphasized that the regulation is grounded in the principle of “same activity, same risks, same regulation,” aligning Hong Kong with international standards. HKMA Chief Executive Eddie Yue added that the framework is “risk-based, pragmatic, and flexible,” offering a secure path for stablecoin innovation.

The ordinance is expected to take effect later this year. The government also plans to consult on future regulations for over-the-counter (OTC) and digital asset custodial services as it prepares a second policy statement on virtual asset development.

Further reinforcing Hong Kong’s ambitions, Financial Secretary Paul Chan reiterated during the recent Hong Kong Web3 Festival that the city aims to become a global hub for blockchain and digital assets. He emphasized that a balanced regulatory approach is key to bridging traditional finance with the emerging digital economy.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Tags: Hong KongStablecoin
Share64Tweet40Share11
Jewel Buddy

Jewel Buddy

Buddy Jewel is a finance writer specializing in cryptocurrency news. With a keen eye on the latest developments in the digital asset space, I provides insightful and timely updates on the ever-evolving world of crypto.

Related Posts

source: cbsnews.com
Crypto

IRS-CI Criticized for Mishandling Billions in Seized Cryptocurrency

4 July 2025
source: Medium.jpeg
News

Arthur Hayes: Stablecoins May Soon Rescue the U.S. Debt Market

4 July 2025
Arbitrum Foundation Responds to Criticism Over ARB Token Allocation, Agrees to Revise Proposal
DAO

Arbitrum’s Timeboost Policy Generates $2M in Fees, Enhances Transaction Efficiency

4 July 2025
source: learn.bybit.com
Blockchain

Ondo Finance and Pantera Capital Launch $250M Initiative to Accelerate Real-World Asset Tokenization

4 July 2025

Featured Posts

Has Web3 Failed to Protect the Core Innovations of Crypto and DeFi?

Has Web3 Failed to Protect the Core Innovations of Crypto and DeFi?

byOlajumoke Oyaleke
15 June 2025
0

Are Green Cryptocurrencies the Future of Blockchain Sustainability?

Are Green Cryptocurrencies the Future of Blockchain Sustainability?

byOlayinka Sodiq
12 June 2025
0

Web3 Gaming’s Scaling Crisis: Why Innovation Alone Isn’t Enough

Web3 Gaming’s Scaling Crisis: Why Innovation Alone Isn’t Enough

byOlayinka Sodiq
10 June 2025
0

What Is Price Slippage in Crypto & How Can You Avoid It

What Is Price Slippage in Crypto & How Can You Avoid It

byOlayinka Sodiq
4 June 2025
0

The Rise of Decentralized Identity Solutions in DeFi

The Rise of Decentralized Identity Solutions in DeFi

byOlayinka Sodiq
20 October 2024
0

Read More

Chain of Thoughts

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Markets Update

Could Solana Surpass Ethereum?: Scaramucci Makes Bold Prediction

12 hours ago

Your Weekend Crypto Roundup | July 2025 (Week 1)

13 hours ago

Your Weekend Crypto Roundup | June 2025 (Week 4)

1 week ago

What South Korea’s Crypto Strategy Signals for the Next Bull Run?

1 week ago

Why Crypto Projects Are Choosing MiCA Over the US, Even With Regulatory Support on the Rise

1 week ago

Tokenized Treasuries vs. Stablecoins: Where Will Institutional Capital Flow?

1 week ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    The Open Platform is first unicorn in Web3 ecosystem in Telegram at $1bn valuation

    bychainwire
    3 July 2025
    0

    Cooking.City Bringing Back Value Redistribution to Solana Fair Launches

    bychainwire
    3 July 2025
    0

    Oasis Protocol Foundation Launches ROFL Mainnet: Verifiable OffChain Compute Framework Powering AI Applications

    bychainwire
    2 July 2025
    0

    WEMADE & Redlab Unleash Web3 MMORPG – Global Pre-Registration Open for Aug 2025

    byPressRelease
    2 July 2025
    0

    PrimeXBT Launches ‘Trade as VIP’ Campaign Offering 70% Off Trading Fees

    bychainwire
    2 July 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    Please enter and activate your license key for Cryptocurrency Widgets PRO plugin for unrestricted and full access of all premium features.

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Markets
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverses
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00