Hong Kong Cracks Down: Zero Stablecoin Licenses Issued—Regulators Warn ’Impostors’ Face Legal Reckoning

Hong Kong’s financial regulators just dropped a bombshell—not a single stablecoin operator has been greenlit yet. And they’re coming for the fakes.

The Regulatory Hammer Looms

No approvals. No exceptions. The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) are playing hardball with would-be stablecoin issuers. Unlicensed operators? They’re skating on thin ice—with regulators sharpening the legal blades.

Why This Matters

Stablecoins are the backbone of crypto trading, pegged to assets like the dollar. But in Hong Kong’s push to become a crypto hub, regulators won’t let just anyone play banker. Fake operators risk fines, shutdowns, or worse—actual jail time.

The Finance Jab

Meanwhile, traditional banks still charge $30 wire fees for transactions that take three days. Priorities, right?

Bottom line: Hong Kong’s open for crypto business—but only if you follow the rules. And right now, the rulebook’s blank.

Hong Kong’s regulations

Hong Kong’s new stablecoin framework requires these cryptocurrencies to be fully backed by high-quality, liquid assets. The reserve requirement protects consumers and ensures financial stability as the digital asset market expands.

The HKMA also cautioned market participants against making misleading public claims. The financial regulator stressed that the new law criminalizes false representation of oneself as a licensed issuer or an applicant.

HKMA stressed that any such misstatement could attract legal consequences.

To help the public identify legitimate operators, the HKMA will publish a list of licensed stablecoin issuers on its website. Until then, the regulator advised users to be wary of any firm or individual claiming to be licensed or applying for a license.

It added that no licenses have been granted yet, and any public claims to the contrary should be treated with skepticism.

The regulator also cautioned users that holding or transacting with unlicensed stablecoins will be done at their own risk.