The Hong Kong Legislative Council officially passed the "Stablecoin Regulation Bill": Issuers must apply for a license from the Financial Management Commissioner.

The Hong Kong Government welcomes the passage of the Stablecoin Bill by the Legislative Council today (May 21) to establish a licensing regime for fiat stablecoin issuers in Hong Kong and improve the regulatory framework for virtual asset activities in Hong Kong, with a view to maintaining financial stability and promoting financial innovation. After the implementation of the Stablecoins Ordinance, any person who issues fiat currency stablecoins in Hong Kong in the course of business, or fiat currency stablecoins in or outside Hong Kong that claim to be pegged to the value of Hong Kong dollars, must apply for a licence from the Monetary Authority. Relevant persons are also required to comply with a series of AML/CFT, risk management, disclosure requirements, and audit and fit and proper requirements. The Monetary Authority will make further consultations on the detailed regulatory requirements of the regime in due course. In addition, the regulations only allow designated licensed institutions to sell fiat stablecoins in Hong Kong, and only fiat stablecoins issued by licensed issuers can be sold to retail investors. To prevent fraud, at any time (including the six-month non-violation period), only advertisements related to licensed fiat stablecoin issuance will be permitted.