The Hong Kong Legislative Council has passed the "Stablecoin Regulation Bill" and is expected to take effect later this year.

According to the Zhitong Finance APP, on May 21, the Hong Kong Legislative Council passed the "Stablecoin Regulations Bill" today, establishing a licensing system for fiat stablecoin issuers in Hong Kong to enhance the regulatory framework for virtual asset activities in Hong Kong. The regulations are expected to take effect later this year, giving the industry enough time to understand the requirements under the licensing system. The licensing system also includes transitional arrangements so that the industry can apply for licenses and make appropriate business arrangements in accordance with the regulations.