Hong Kong to Ban Unlicensed Stablecoin Ads from August 2025

Hong Kong will criminalize the offering or advertising of unlicensed fiat-referenced stablecoins (FRS) to retail investors starting August 1, 2025. The move, part of the new Stablecoin Ordinance, carries penalties of up to HK$50,000 ($6,300) and six months imprisonment for violators.

The Hong Kong Monetary Authority (HKMA) frames the legislation as a bid to instill trust and stability in the stablecoin market. Chief Executive Eddie Yue issued stark warnings against unlicensed stablecoins, noting their promotion could lead to legal consequences.

Yue highlighted excessive market HYPE around stablecoins, which has driven unwarranted surges in some company valuations. Despite numerous license applications, most firms demonstrated inadequate risk management frameworks. The HKMA anticipates approving only a select few issuers.

This regulatory crackdown mirrors global trends, with the European Union's MiCA framework similarly penalizing unauthorized crypto promotions.