Hong Kong Cracks Down: Unlicensed Stablecoin Promoters Now Face Criminal Charges

Hong Kong just drew a line in the sand—stablecoin shills without licenses now risk jail time.

The move tightens oversight on crypto's most controversial asset class, forcing projects to play by traditional finance rules... or else.

Regulators clearly aren't buying the 'decentralized' hype—this is centralized enforcement at its finest. One more step toward taming crypto's wild west, or just bureaucrats flexing? Either way, moonboys might want to check their paperwork.

Funny how stablecoins need government approval to promise something they often fail to deliver: actual stability.

• Hong Kong has launched a new Stablecoin Ordinance to restrict unlicensed stablecoin platforms.
• The body controlling finance in the country, HKMA, shared that the release of these new restrictions was done to bring in order and protect users from falling into scams.

Hong Kong has officially released a set of rules regarding the use and advertisement of stablecoins within the country. The country has decided to limit the number of licenses offered to companies and individuals operating in the stablecoin market.

On the 29th of May, the Hong Kong legislative council drafted what they referred to as “Stablecoin Ordinances.” The document contained a set of rules to guide companies and individuals alike on the promotion of stablecoins.

According to the details, from the 1st of August 2025, Hong Kong will start enforcing its “Stablecoin Ordinance,” a rule that makes the promotion of unlicensed fiat-referenced stablecoin (FRS) illegal for everyday users.

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This basically means that random day-to-day stablecoin retail traders cannot buy/sell or advertise their services. The law passed added that anyone who violates that law WOULD pay a fine of 50,000 (Hong Kong dollars), which is about $6,500, and also spend 6 months in jail.

The Reason for the Stablecoin Ban

On Wednesday, the Hong Kong Monetary Authority, responsible for maintaining financial stability in the country, warned the public about the risks of purchasing stablecoins from unlicensed platforms. They also added that the launch of the Stablecoin Ordinances is to bring order and trust to the Stablecoin market as well as protect users from scams and risky speculations.

This development has caused excitement for some companies in the crypto space as Hong Kong remains one of the giants in the Web3 ecosystem. More than 40 have reached out and showed their interest in launching compliant stablecoins.

However, many of these firms have not been approved due to the fact that they lack solid business models or proper risk controls. Companies like ANT Group, JD.com, Standard Chartered, and Circle are “reportedly” preparing to apply once the regulation takes effect in August.

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