AsianFin -- Hong Kong’s new stablecoin ordinance, which mandates that issuers of fiat-backed digital assets be licensed, will come into force on August 1, the government announced on Friday.

The city’s Legislative Council approved the bill on May 21, introducing a regulatory framework for stablecoins—cryptocurrencies typically pegged to fiat currencies like the U.S. dollar or Hong Kong dollar. However, the implementation date had not been previously disclosed.

Under the new law, any entity issuing fiat-referenced stablecoins within Hong Kong, or Hong Kong dollar-backed stablecoins globally, must obtain a licence from the Hong Kong Monetary Authority.