The Hong Kong administration has announced the introduction of an ordinance regulating the issuance of stablecoins, marking a significant step in enhancing control over cryptocurrencies.
Passage of the Stablecoins Bill
The Hong Kong Legislative Council passed the Stablecoins Bill in May 2025. The ordinance establishes the first structured regulatory approach to this segment of the cryptocurrency market in the region.
Impact on Stablecoin Markets in Hong Kong
The ordinance addresses all stablecoins pegged to fiat currencies like the Hong Kong Dollar, indicating substantial changes for market participants planning to issue such tokens.
Global Context of Regulation
The regulation aligns with global efforts following the collapse of TerraUSD in 2022, seen as a proactive measure to avoid similar incidents in Hong Kong's financial market.
The introduction of the Stablecoin Ordinance in Hong Kong aims to create a more stable and regulated market, which is expected to enhance investor confidence in the sector.
