Hong Kong Makes First Move To Pass Crucial Crypto Bill, Beats U.S.

Hong Kong has officially passed a new law focused on stablecoin assets, putting the city ahead in the global crypto race. This bold step shows Hong Kong is committed to becoming a leading crypto-friendly financial center. 

While the U.S. is still debating its stablecoin rules, Hong Kong’s Legislative Council has moved quickly and approved the Stablecoin Bill in its third reading. This development puts the city at the forefront of digital asset regulation.

Hong Kong’s New Law Tries to Balance New Ideas and Safety

Hong Kong’s new Stablecoin Bill establishes a full licensing system managed by the Hong Kong Monetary Authority (HKMA). Any company that wants to create stablecoins linked to regular money must get official approval first. The goal is to support innovations while protecting users and keeping the market safe.

Christopher Hui, who works with the government on financial matters, explained the bill’s purpose. He said the law follows global rules and will help Hong Kong’s digital crypto industry grow safely.

According to Hui, the bill supports long-term progress, safeguards users, and boosts Hong Kong’s image as a top financial center. This is because stablecoins have become more critical in the global economy. 

Hong Kong Stablecoin Bill Follows A Risk-Based Approach 

The new law is built on “same activity, same risks, same regulation.” It follows a risk-based approach that focuses on practical and flexible rules. 

In a recent statement, Eddie Yue, the head of the HKMA, said this new system will help build a strong and efficient way to manage digital assets.

He also said that clear rules are important for helping the crypto industry grow safely and responsibly. According to him, the new law should be fair, easy to understand, and able to keep up with the fast changes in the digital space.

The US Stalls Crypto Bill as Hong Kong Acts

While Hong Kong moves ahead, the United States is still trying to implement its own stablecoin law. The GENIUS Act, a bill that could change how stablecoins are handled across the country, is still not final. 

The Senate recently advanced the bill in a 66-32 vote. However, it must still pass a full-floor vote and move through the House of Representatives before becoming law. On a positive note, Senator Bill Hagerty said the GENIUS Act is expected to pass next week.

Even with support from President Donald Trump and the U.S. Securities and Exchange Commission’s (SEC) new approach to crypto, the U.S. has not yet caught up. Many in the industry are watching closely to see what happens next.