
Hong Kong Cracks Down on Unlicensed Stablecoin Promotions with Jail Time, Fines
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Starting August 1, promoting unlicensed stablecoins in Hong Kong will become a criminal offense punishable by fines of up to HK$50,000 (US$6,300) and six months’ imprisonment.
The HKMA issued a stern warning Wednesday, cautioning the public against engaging with unauthorized fiat-referenced stablecoins (FRS). The new Stablecoin Ordinance seeks to curb speculative excesses and bolster market integrity.
“Recent hype-driven surges in trading activity have distorted prices, making regulatory intervention necessary,” said HKMA Chief Executive Eddie Yue. The rules aim to shield retail investors from fraud while legitimizing the stablecoin sector.