Hong Kong financial regulators have passed new stablecoin legislation ahead of the US’s GENIUS Act vote and adoption.
New stablecoin rules in Hong Kong will allow the region to maintain financial innovation in the digital asset field.
The region’s adoption of stablecoins by the Hong Kong Legislative Council comes as Standard Chartered Bank and Animoca Brands aim to design an HKD stablecoin.
Hong Kong pushes for crypto regulation ahead of US pro-crypto administration
Hong Kong’s Legislative Council has passed a new stablecoin bill in support of fiat-backed stablecoins such as USDC and RLUSD, giving 1:1-backed stablecoins enhanced rights in the region.
The new rules lay tracks for Standard Chartered Bank and Animoca Brands’ upcoming Hong Kong Dollar stablecoin.
From Hong Kong’s stablecoin draft
The new bill in support of fiat-backed stablecoins opens new doors for stablecoin issuers to settle and deal in Hong Kong. Rules indicate that issuers must have a minimum capital requirement of HK$25 million.
Hong Kong’s stablecoin adoption also comes after the region pushed forward with the ASPIRe program, led by Hong Kong’s Securities and Futures Commission (SFC), to boost digital asset adoption and compete with international innovators in the West.
Hong Kong’s upcoming HKD stablecoin will ideally be used for cross-border transactions and increasing the usage of the HKD for financial payments and commerce.
Similarly, the US has seen fiat-backed stablecoins as ways to increase demand for US treasuries and to minimize debts affecting the USD.
Hong Kong to adopt and utilize digital assets in financial sector
Hong Kong has quickly adopted digital asset legislation faster than other nations. Talks on stablecoin legislations and crypto adoption were mentioned in late 2024.
As part of the ASPIRe roadmap, Hong Kong is due to continue its adoption of digital assets and stablecoins, merging crypto with the region’s existing traditional financial infrastructure.
The US is due to pass the GENIUS Act by next Monday, a bill which will formally allow banking groups and institutions to integrate stablecoins and digital assets if they wish to do so by following clear regulatory guidelines.
