According to Cointelegraph, Hong Kong will implement stablecoin regulations starting August 1, prohibiting the offering or promotion of unauthorized fiat-referenced stablecoins to retail investors. The new law introduces fines of up to HKD 50,000 and imprisonment for up to six months. The Hong Kong Monetary Authority has warned investors to avoid participating in unauthorized stablecoins to avoid legal violations. President Yu Wai-man stated that the regulations aim to bring credibility and stability to the stablecoin industry and protect investors from fraud and excessive speculation. Yu pointed out that market enthusiasm for stablecoins has led to unreasonable increases in stock prices and trading volumes, necessitating further control. About 50 companies have applied for stablecoin licenses, but most proposals lack specific implementation plans. Hong Kong's regulatory measures are among the strictest to date, increasing criminal penalties to balance financial technology innovation with regulation.