Hong Kong will fully implement the Stablecoin Ordinance starting August 1st. Accordingly, providing or promoting unauthorized fiat-based stablecoins (FRS) to general investors will become illegal.
This measure aims to enhance the credibility of the cryptocurrency market and reduce inappropriate investment activities. Violations of the law may result in a Level 5 fine of 50,000 Hong Kong dollars (approximately 8.76 million won) or up to 6 months in prison. The Hong Kong Monetary Authority (HKMA), which serves as the central bank of the Hong Kong Special Administrative Region, issued a warning on the 23rd through an official statement, urging general investors to avoid unauthorized stablecoin-related products.
Eddie Yue, CEO of HKMA, stated in the announcement that "this regulatory introduction is a measure to secure the reliability and transparency of the stablecoin market" and emphasized that it is "an effort to protect investors from fraud and excessive speculative risks". He particularly noted that as stablecoins are increasingly integrated into the financial system, establishing clear standards from the early stages is crucial for maintaining market soundness.
Hong Kong has been continuously refining digital asset regulations, including stablecoins, since last year, and this implementation is interpreted as part of that effort. The authorities plan to prepare and provide detailed guidelines on future authorization procedures and requirements to market participants.
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