On May 21, 2025, the Stablecoins Bill was passed in LegCo. The bill aims to establish a licensing regime for fiat-referenced stablecoins ("FRS") issuers in Hong Kong, focusing on the potential for such stablecoins to become a widely accepted means of payment and their possible integration into the mainstream financial system.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 21, 2025, the Stablecoins Bill was passed in LegCo. The bill aims to establish a licensing regime for fiat-referenced stablecoins ("FRS") issuers in Hong Kong, focusing on the potential for such stablecoins to become a widely accepted means of payment and their possible integration into the mainstream financial system.
The bill is about regulating the issuance of fiat-referenced stablecoins, which are stablecoins that reference one or more fiat currencies. This regulatory framework seeks to mitigate potential monetary and financial stability risks associated with the increasing prevalence of virtual assets ("VAs") and stablecoins.
The bill also addresses the need to ensure consumer protection and comply with international standards on anti-money laundering and counter-terrorist financing.
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