💼🇭🇰 Hong Kong Fintech Firms Dive Into Crypto — Is Asia’s Financial Hub Turning Web3?
Hong Kong launched a much-anticipated fiat-based stablecoin legal framework on August 1. Stablecoin operators must meet extra restrictions under this system, but the government's acknowledgment of this class of digital assets is good for investors.
Fintech businesses are fundraising due to Hong Kong's new stablecoin environment, according to Reuters. All stablecoin issuers in Hong Kong must now get a license from the HKMA. Existing enterprises have a six-month transitioning period.
Besides licensing, Hong Kong's proposed stablecoin laws may address reserve asset management, anti-money laundering, and redemption mechanisms. At least 10 listed Hong Kong Fintechs have raised $1.5 billion via share placements to invest in stablecoins, blockchain payment systems, and ordinary cryptocurrencies since this new regime took effect, according to Reuters.
OSL Group, a blockchain and digital asset startup, secured $300 million in equity funding in late July. Others include Dmall Inc. and SenseTime Group, a major AI startup.
Asian Markets Driven by Trump's Crypto Support
In other developments, Bloomberg links recent regulatory and investment measures in Hong Kong and other Asian markets to US President Donald Trump's crypto-friendly policies. Trump signed the first significant US digital asset regulation measure, the GENIUS Act, on July 18 to establish a stablecoin legal framework.
Other than Hong Kong, Asian-pegged stablecoins are popular in South Korea, Malaysia, Thailand, and the Philippines despite capital outflow concerns. Most of the $256 billion stablecoins are still tied to the US currency.
Bloomberg reports that USDC, USDT, and USDS transactions on Korean exchanges totaled 57 trillion won ($41 billion) in the first quarter of 2025. In response, the governing Democratic Party has proposed the Digital Asset Basic Act, which would allow local enterprises to mint won-based stablecoins. Not all politicians favor this proposal.
