Hong Kong Enacts Stablecoin Licensing Law

Hong Kong has officially passed a law requiring stablecoin issuers to be licensed by the Hong Kong Monetary Authority. The law, known as the Stablecoins Ordinance, is expected to take effect this year, giving the industry time to adjust to new regulations. Issuers must adhere to standards in reserve management and money laundering prevention. This move aligns with global regulatory trends, as the U.S. Senate has also advanced similar legislation. The law is part of Hong Kong's strategy to attract crypto firms and foster Web3 infrastructure development.