Hong Kong has enacted a stablecoin bill to create a licensing framework for fiat-backed stablecoin issuers, marking its entry into the global competition for stablecoin regulation. This initiative began in 2023, and institutions wishing to operate in the stablecoin space can apply for licenses from the Hong Kong Monetary Authority by the end of the year. Legislative council member Johnny Ng emphasized that the region welcomes global enterprises interested in issuing stablecoins. The move aligns Hong Kong with the European Union, the U.S., and the U.K., all of which are also developing stablecoin regulations. The stablecoin sector has gained considerable traction, with both cryptocurrency firms and traditional financial institutions increasing their involvement due to concerns about market share. The trend reflects a growing recognition of stablecoins as significant tools in the financial ecosystem.

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