Bitcoin News Today: Hong Kong criminalizes unlicensed stablecoin marketing Aug 1, 2025 aligning with EU MiCA standards

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Thursday, Jul 24, 2025 7:45 am ET1min read
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- Hong Kong will enforce a stablecoin licensing regime from August 1, 2025, requiring HKMA approval for fiat-backed stablecoin issuers or face penalties up to HK$50,000 and six months’ imprisonment.

- The Stablecoin Ordinance aligns with EU MiCA standards, prohibiting unlicensed entities from promoting stablecoins to retail investors to mitigate risks and curb speculation.

- HKMA emphasizes strict operational resilience, risk management, and AML compliance for applicants, with only a limited number expected to secure initial licenses due to high barriers.

- Retail investor protection is central, criminalizing unlicensed stablecoin promotions and urging public caution amid fraudulent schemes and market hype.

- Market participants are advised to collaborate with licensed issuers, as stringent regulations prioritize long-term stability over short-term scalability in Hong Kong’s fintech strategy.

Hong Kong will implement a licensing regime for stablecoins on August 1, 2025, requiring all fiat-backed stablecoin (FRS) issuers to obtain approval from the Hong Kong Monetary Authority (HKMA) or face penalties of up to HK$50,000 and six months’ imprisonment. The Stablecoin Ordinance, outlined in a 269-page document published in the Hong Kong Special Administrative Region Gazette, prohibits unlicensed entities from promoting or distributing FRS to retail investors, aiming to mitigate financial risks and curb speculative activities in the stablecoin sector [1]. This move aligns Hong Kong with the European Union’s Markets in Crypto-Assets (MiCA) regulation, reinforcing its position as a global leader in stablecoin oversight [2].

The HKMA emphasized that only a limited number of applicants are expected to secure licenses initially, with Chief Executive Eddie Yue cautioning that many proposals for stablecoin use cases—such as cross-border payments and Web3.0 integration—remain theoretical. Applicants are required to demonstrate operational resilience, risk management frameworks, and technical expertise, criteria that Yue noted have not been met by most entities [3]. The regulator also highlighted the importance of anti-money laundering (AML) measures, refining guidelines through market consultations to align with international standards. Finalized supervision and AML requirements are anticipated by July 31 [4].

Retail investor protection is central to the Ordinance. From August 1, promoting unlicensed FRS will constitute a criminal offense, with the HKMA urging the public to avoid unregulated offerings during the transition period. Yue cited recent cases of fraudulent stablecoin promotions leading to public financial losses, underscoring the need for caution amid market hype [5]. The licensing process will be detailed in an "Explanatory Note on Licensing of Stablecoin Issuers," addressing speculation about application procedures [6].

Market participants are advised to adopt collaborative models, such as partnering with licensed issuers, rather than pursuing individual applications. While the HKMA has received inquiries from dozens of institutions, most proposals remain conceptual, suggesting a selective approval process. Yue acknowledged that stringent regulations may limit short-term scalability but stressed that early caution is essential to prevent long-term instability [7].

The Ordinance reflects Hong Kong’s broader fintech strategy to balance innovation with risk management. By criminalizing unregulated stablecoin activities and enforcing rigorous licensing standards, the region aims to establish a resilient digital asset ecosystem while safeguarding investor interests. The regulatory shift positions Hong Kong as a pioneer in retail stablecoin oversight, with implications for global regulatory trends [8].

Sources:

[1] Hong Kong Monetary Authority. [https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/](https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/)

[2] AInvest. [https://www.ainvest.com/news/hong-kong-criminalizes-unlicensed-stablecoin-marketing-starting-august-1-protect-retail-investors-2507/](https://www.ainvest.com/news/hong-kong-criminalizes-unlicensed-stablecoin-marketing-starting-august-1-protect-retail-investors-2507/)

[3] Library of Congress. [https://www.loc.gov/item/global-legal-monitor/2025-07-22/hong-kong-comprehensive-stablecoins-ordinance-to-take-effect-august-1/](https://www.loc.gov/item/global-legal-monitor/2025-07-22/hong-kong-comprehensive-stablecoins-ordinance-to-take-effect-august-1/)

[4] Charltons Law. [https://www.charltonslaw.com/hkma-consultations-on-obligations-of-hkma-licensed-stablecoin-issuers/](https://www.charltonslaw.com/hkma-consultations-on-obligations-of-hkma-licensed-stablecoin-issuers/)

[5] Hong Kong Monetary Authority. [https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/](https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/)

[6]

Bitcoin
.com. [https://news.bitcoin.com/hong-kong-monetary-authority-ceo-calls-for-caution-in-stablecoin-development-amid-hype/](https://news.bitcoin.com/hong-kong-monetary-authority-ceo-calls-for-caution-in-stablecoin-development-amid-hype/)

[7] Coinfomania. [https://coinfomania.com/hong-kong-stablecoin-regulation-edge/](https://coinfomania.com/hong-kong-stablecoin-regulation-edge/)

[8] Hong Kong Monetary Authority. [https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/](https://www.hkma.gov.hk/eng/news-and-media/insight/2025/07/20250723/)