The Hong Kong Legislative Council has officially passed the Stablecoin Bill: Issuers must apply for a license from the Monetary Authority

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 currency stablecoin issuers in Hong Kong and improve the regulatory framework for virtual asset activities in Hong Kong to maintain financial stability while promoting financial innovation. After the implementation of the Stablecoin Ordinance, anyone who issues fiat currency stablecoins in Hong Kong in the course of their business or fiat currency stablecoins claiming to anchor the value of the Hong Kong dollar in Hong Kong or outside Hong Kong must apply for a license from the Monetary Authority. Relevant persons are also required to meet a series of anti-money laundering and terrorist financing, risk management, disclosure requirements, and audit and fit and proper person requirements. The Monetary Authority will consult further on the detailed regulatory requirements of the regime in due course.
In addition, the Ordinance allows only designated licensees to sell fiat stablecoins in Hong Kong, and only fiat stablecoins issued by licensed issuers can be sold to retail investors. To prevent fraud, only advertisements about licensed fiat stablecoins are allowed at all times (including the six-month non-violation period).