Hong Kong Monetary Authority Warns Against Unregulated Stablecoin Issuance

The Hong Kong Monetary Authority (HKMA) has issued a stark warning to investors, clarifying that no stablecoin issuers have been approved in the city. The regulatory body labeled the marketing of such products as illegal, following the announcement of AxCNH, an offshore Chinese yuan-pegged stablecoin by Hong Kong-based AnchorX.

AnchorX claimed its stablecoin WOULD facilitate cross-border payments and tokenized real-world assets, citing a license from Kazakhstan’s Astana Financial Services Authority. The HKMA swiftly countered on its WeChat channel, emphasizing that no entity is licensed to issue stablecoins in Hong Kong and urging public caution.

This confrontation marks the first test of Hong Kong’s stablecoin regulatory framework, enacted in August, which mandates strict licensing, capital, and governance standards for issuers. The warning coincides with China’s securities regulator advising brokerages to halt real-world asset tokenization activities in Hong Kong over risk management concerns.