The Hong Kong Special Administrative Region Government today (May 30) published the "Stablecoin Regulation" in the gazette, meaning that the "Stablecoin Regulation" has officially become law, further improving Hong Kong's regulatory framework for digital asset activities. The Hong Kong Legislative Council officially passed the bill on May 21 to establish a licensing system for issuers of fiat-backed stablecoins (stablecoins pegged to fiat currency) in Hong Kong. According to the regulation, in order to enhance public protection, only designated licensed institutions can sell fiat-backed stablecoins in Hong Kong; only fiat-backed stablecoins issued by licensed issuers can be sold to retail investors.

The Hong Kong Monetary Authority reminds that the Stablecoin Regulation will officially take effect later this year and no licenses have been issued to any stablecoin issuers at this time. Citizens should carefully discern information related to fiat-backed stablecoins to guard against fraudsters using false advertisements.

It is hoped that in the future, regulations will become more standardized to address the problem of difficulty in cashing out.