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Stablecoin Regulation Update – How Hong Kong’s New Stablecoin Rules Impact Crypto Investors
Stablecoin Regulation Update – The Hong Kong Monetary Authority (HKMA), the city’s central bank, has officially completed its regulatory framework for stablecoin issuers, set to take effect on August 1, 2025. This comes with two comprehensive guideline documents clarifying how licensed stablecoin businesses will be supervised, including strict Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) measures.
Public Registry and License Status
In a bid to increase transparency, Hong Kong will soon introduce a public registry of licensed stablecoin issuers, allowing anyone to verify legitimate players via the HKMA website. However, the HKMA made it clear that no licenses have been issued yet and warned the public to be cautious of entities falsely claiming to be licensed or regulated. Investors holding unlicensed stablecoins do so at their own risk.
HKMA CEO Speaks Out on Stablecoin Hype
HKMA Chief Executive Eddie Yue highlighted the recent surge in stablecoin hype, which has inflated trading volumes and stock prices beyond realistic levels. Yue emphasized the need to “rein in the euphoria” as many current applicants fail to meet the required standards. He noted that some license proposals are vague, lack concrete implementation plans, or come from groups without the necessary technical know-how.
Limited Licenses and Important Deadlines
Initially, only a few licenses will be granted under the new regulatory regime. Interested market participants must approach the HKMA by August 1 and submit full applications by September 30 to be considered in the first licensing batch.
Rising Stablecoin Scams in Mainland China
Meanwhile, in Shenzhen, authorities have issued warnings about a rise in stablecoin-related scams disguised as crypto investment opportunities. The city’s task force for illicit financial activities cautioned against unlicensed groups exploiting public confusion to promote illegal schemes.
As Hong Kong steps up regulation, investors are urged to stay informed and avoid unlicensed stablecoin offers amid increasing global scrutiny.
