Animoca Brands Expresses Support for Hong Kong Stablecoin Law

Governments are no longer sitting back when it comes to crypto regulation. Hong Kong passing a new stablecoin bill a week ago sets clear guidelines for issuers, and this step has caught the attention of industry leaders. One of them is Evan Auyang, Group President at Animoca Brands, who believes the move places Hong Kong ahead of many other regions.

Good to know

• Hong Kong passed a bill creating a licensing system for stablecoin issuers.
• Animoca Brands believes the new framework balances innovation and oversight.
• The US Senate is also advancing its own stablecoin legislation with the GENIUS Act.

As Hong Kong establishes a formal licensing framework for stablecoins, the US is not far behind. The Senate recently advanced the GENIUS Act, its first major move toward federal regulation in the sector. These two global hubs making progress at the same time shows a shift in how digital financial tools are being taken seriously by lawmakers.

Evan Auyang from Animoca Brands pointed out that the industry might be at a turning point. He said the new regulation in Hong Kong sends a strong message about the city’s digital finance ambitions.

“Hong Kong has raised the bar for stablecoin regulation. With the passing of its stablecoin bill on Wednesday [May 21], the city has established a licensing framework with a clear statement of intent: Hong Kong wants to lead in the next chapter of digital finance. By mandating rigorous standards around reserves, redemption and risk management, Hong Kong is offering stablecoin issuers real regulatory clarity without stifling innovation.”

Market Signals Beyond Borders

The progress in both Hong Kong and the US suggests more countries could soon adopt similar regulations. Auyang sees this global push as a sign of growing maturity in the Web3 ecosystem.

“While stablecoins themselves are not new, serious regulation around them is starting to take root. Earlier this week the US Senate advanced the bipartisan GENIUS Act – its first meaningful push toward a federal stablecoin framework – signaling that Washington is also waking up to the strategic importance of digital financial infrastructure. The simultaneous efforts by these major financial hubs in both Hong Kong and the US highlight the strategic significance of stablecoin infrastructure and are likely to prompt other countries and cities to adopt similar measures.”

He added that these moves could help create a more secure and inviting space for larger players to enter Web3 and crypto-related sectors.

“This global momentum will continue to fortify the regulatory framework for Web3, creating a safer landscape for potential major players to enter the space.”

Real-World Use Is Growing

Businesses and consumers around the world are already using stablecoins to make cross-border payments faster and more efficient. As more countries look to regulate them without stalling innovation, the crypto industry could expand steadily over the next decade.