Hong Kong Expands Stablecoin Bill to Include Stored Value Licensees

According to a new Legislative Council bulletin, Hong Kong is advancing regulation of stablecoins—including RMB-backed types—through updates to its proposed framework and oversight mechanisms.

Summary

The Hong Kong Legislative Council released a special bulletin on October 13 detailing progress on the region’s stablecoin regulatory framework. The report, titled the “special report,” covers the inclusion of renminbi-backed stablecoins within Hong Kong’s evolving digital asset oversight. This update follows earlier amendments allowing stored value facility licensees to issue fiat-backed stablecoins. The government’s latest disclosure highlights continued efforts to integrate digital assets into the financial system under clear legislative supervision.

Terms & Concepts
  • Stablecoin: A cryptocurrency pegged to a reserve asset, such as fiat currency, designed to maintain a stable value.
  • Renminbi-backed Stablecoin: A type of stablecoin whose value is pegged to the Chinese yuan (RMB), offering digital representation of the currency.