Hong Kong Stablecoins Bill Passed By LegCo

Stablecoins¹ are cryptocurrencies with values tied to fiat currencies or other assets, and are often said to be "pegged to" a single or a basket of fiat currents and/or other assets.²

Given the capacity of stablecoins to maintain stable value relative to some real world assets, the Hong Kong Government has expressed the view that stablecoins have potential to develop into a widely accepted means of payment and to be incorporated into the mainstream financial system, but that this in turn introduces risks that could spill over from the virtual assets sector to the traditional financial system, or vice versa.

On 21 May 2025, the Hong Kong Legislative Council passed the Stablecoins Bill, establishing a licensing regime for stablecoin issuers in Hong Kong.