Hong Kong Takes Lead in Crypto Regulation with Stablecoin Bill as US Trails Behind
In a bold move to hold its position as the global crypto hub, Hong Kong has announced the passage of the Stablecoin Bill.
With this move, Hong Kong has overpowered the United States in crypto regulation, as the latter lags behind in stablecoin laws.
Notably, Hong Kong’s move comes amid the uncertainty surrounding the much-hyped GENIUS Act in the US.
Though the Senate advanced the bill, its final passage is still pending.
The Legislative Council of Hong Kong has reportedly passed the third reading of the Stablecoin Bill.
With the bill, the government introduces a licensing regime for fiat-referenced stablecoin issuers in Hong Kong to bolster the city’s virtual asset regulatory framework and promote financial stability and innovation.
As per official statements, institutions will be able to apply to the Hong Kong Monetary Authority for stablecoin issuer licenses by the end of this year.
According to Legislative Council member Ng Kit Chuang, stablecoin regulation is a key priority in Hong Kong’s vision to become an international crypto hub.
Despite President Donald Trump’s pro-crypto measures and the SEC’s renewed approach to the industry, the country fails to lead in regulation.
Over the past few weeks, the community has been eagerly anticipating the passage of the GENIUS Act, a stablecoin bill that is poised to reshape the future of US crypto regulation.