Hong Kong has officially approved a new law for stablecoins. This law is called the Stablecoin Ordinance and will take effect in 2026. It is inspired by a U.S. crypto law called the GENIUS Act, which gives clear rules for digital money like stablecoins.
But why does this matter? And what does it mean for USTC, the stablecoin in the Terra Classic ecosystem?
What Is the Stablecoin Ordinance?
The Stablecoin Ordinance is a new rule from Hong Kong that says:
1. All stablecoins must be backed by real money or assets.
2. Only licensed companies can issue or manage stablecoins.
3. The government will watch over how stablecoins work to protect users.
This is the first time Hong Kong is putting official laws in place to manage stablecoins like USDT, USDC, and yes, USTC.
Why Is Hong Kong Doing This?
Stablecoins are growing fast. But after the crash of UST (TerraUSD) in 2022, many governments want to avoid another disaster. The U.S. made the GENIUS Act to set safe rules. Hong Kong is now following that idea with its own version.
This shows Hong Kong wants to become a leader in crypto, but also wants to make sure users stay safe.
What Does This Mean for USTC?
USTC is the new version of the old TerraUSD that crashed in 2022. The Terra Classic community has been working hard to bring trust back to USTC.
Now that Hong Kong has passed this new stablecoin law, it could help projects like USTC in several ways:
1. If USTC becomes fully backed and stable, it could apply for a license in Hong Kong.
2. Getting approved could help USTC be seen as trustworthy and legal.
3. Investors and crypto exchanges in Asia may feel more confident using USTC.
4. Hong Kong could become a place where USTC finds new support and growth.
Final Thoughts
Hong Kong is showing the world that crypto can grow safely with the right rules. Its new Stablecoin Ordinance will start in 2026 and is based on clear ideas from the U.S.
For USTC, this could be a new chance to rise again, if it can follow the rules and prove it is safe. The Terra Classic community should keep working on making USTC stable and backed, because the world is watching. And now, Hong Kong is open for it.