Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

Hong Kong passes stablecoin bill, licensing mandatory for token issuers

admin by admin
May 21, 2025
in Politics
0
Hong Kong passes stablecoin bill, licensing mandatory for token issuers
0
SHARES
3
VIEWS
Share on FacebookShare on Twitter

The Hong Kong government passed the stablecoin bill, which marks the beginning of licensing for stablecoin issuers. 

The legislative council on Wednesday passed the bill on its third reading, which directs the token issuers to get licensing from the Hong Kong Monetary Authority (HKMA).

Stablecoin is a digital asset that is pegged to conventional currencies like the dollar or to commodities such as gold. 

What the bill entails 

An issuer of a stablecoin that pegs its value to Hong Kong dollars inside or outside Hong Kong will need to obtain a license from the HKMA. 

The relevant persons issuing the stablecoins need to satisfy requirements in “reserve asset management and redemption, including proper segregation of client assets, maintaining a robust stabilisation mechanism, and processing stablecoin holders’ requests for redemption at par value with reasonable conditions”, the government said in its release. 

The issuers also need to make sure they comply with standards for anti-money laundering, counter terrorist financing, risk management, disclosure and auditing, fitness, and property. 

The government said the ordinance is expected to come into effect this year. 

This is to provide sufficient time for the industry to understand the requirements needed under the licensing regime. 

HKMA added that there will be additional consultations on the detailed regulatory framework. 

The Chief Executive of the Hong Kong Monetary Authority, Mr Eddie Yue, said, “The Ordinance has established a risk-based, pragmatic, and flexible regulatory regime. We believe that a robust and fit-for-purpose regulatory environment would provide favourable conditions to support the healthy, responsible, and sustainable development of Hong Kong’s stablecoin and the broader digital asset ecosystem.”

The latest addition to Hong Kong’s crypto regulations

Hong Kong had enacted a crypto licensing regime in 2023 to protect retail investors.

Hong Kong was the first Asian country to accept crypto products as a mainstream investment asset. 

It had also started Asia’s first spot crypto exchange-traded funds in 2024.

The country had also launched a sandbox in 2024 to allow stablecoin trials in a limited and risk-controlled environment. 

US’s GENIUS Act

The US Government is also planning a bill that is designed to regulate stablecoins. The bill is dubbed the GENIUS Act.

The US Senate advanced the bill earlier this week on a bipartisan vote. The bill was advanced with a 66-32 vote on Monday. 

The bill would require stablecoins to be backed fully by US dollars or highly liquid assets.

It also mandates annual audits with issuers with a market capitalization of more than $50 billion. 

The bill was voted on by the Senate after a couple of amendments were forced by the Democrats. 

This includes changes to consumer protection safeguards and limits on tech companies issuing stablecoins.

It also includes ethical standards for special government employee,s which would apply to Elon Musk and David Sacks. 

The post Hong Kong passes stablecoin bill, licensing mandatory for token issuers appeared first on Invezz

Previous Post

Google’s smart glasses bet with Warby Parker could also benefit this other eyewear maker

Next Post

Palo Alto Networks post-earnings decline: a short-term setback for long-term gains?

admin

admin

Next Post
Palo Alto Networks post-earnings decline: a short-term setback for long-term gains?

Palo Alto Networks post-earnings decline: a short-term setback for long-term gains?

Trending News

Honda considers ramping up US production to offset Trump tariffs, aims for 90% local output

Honda considers ramping up US production to offset Trump tariffs, aims for 90% local output

April 15, 2025
JPMorgan ends lawsuit against Tesla over Musk’s 2018 tweet- report

JPMorgan ends lawsuit against Tesla over Musk’s 2018 tweet- report

November 30, 2024
Will Asian markets sustain their rally as US inflation data threatens to shift Fed policy?

Will Asian markets sustain their rally as US inflation data threatens to shift Fed policy?

October 10, 2024
Subscribe to Insightful Word


    Recent News

    Figma hits NYSE today—can FIG stock mirror other hot tech IPOs?

    Figma hits NYSE today—can FIG stock mirror other hot tech IPOs?

    July 31, 2025
    Roblox stock rockets 25% pre-earnings as user growth, AI bets fuel Wall Street hype

    Roblox stock rockets 25% pre-earnings as user growth, AI bets fuel Wall Street hype

    July 31, 2025
    Microsoft price target raised by BMO Capital following strong azure growth

    Microsoft price target raised by BMO Capital following strong azure growth

    July 31, 2025
    US stocks open higher powered by strong tech earnings

    US stocks open higher powered by strong tech earnings

    July 31, 2025

    Recent News

    Figma hits NYSE today—can FIG stock mirror other hot tech IPOs?

    Figma hits NYSE today—can FIG stock mirror other hot tech IPOs?

    July 31, 2025
    Roblox stock rockets 25% pre-earnings as user growth, AI bets fuel Wall Street hype

    Roblox stock rockets 25% pre-earnings as user growth, AI bets fuel Wall Street hype

    July 31, 2025

    Latest News

    • Figma hits NYSE today—can FIG stock mirror other hot tech IPOs?
    • Roblox stock rockets 25% pre-earnings as user growth, AI bets fuel Wall Street hype
    • Microsoft price target raised by BMO Capital following strong azure growth

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.