On August 1, 2025, Hong Kong's (Stablecoin Regulation) officially takes effect, requiring all institutions issuing fiat-pegged stablecoins to obtain a license from the Monetary Authority. The core of the new regulation includes:

  1. High licensing thresholds: Requires HK$25 million in paid-up capital + 100% asset reserves, only a handful of licenses issued in the first batch;

  2. Real-name trading system: Mandatory KYC verification, user identity information retained for over 5 years;

  3. Black market crackdown: Unlicensed institutions are prohibited from providing stablecoin exchanges, some exchange shops have closed or gone underground.

Impact of new regulations: Black market turbulence and soaring compliance costs

  • Black market transaction volume plummets by 33%: Daily average outflow of off-exchange stablecoins drops from 52 million USDT to 34.9 million USDT, with some stores seeing a 43% decrease in transaction volume;

  • Underground premiums surge: Non-closed exchange shops privately trade USDT at a premium of 8.7% (normal around 0.1%), Monetary Authority warns that such transactions are not legally protected;

  • Compliance handling fees skyrocket: Exchange rates for licensed channels rise from 0.1% to 6%, retail costs increase 60-fold.

Real dilemmas for retail investors

  1. High-risk underground transactions

    • Cash transactions become money laundering tools: $2.8 million cash case seized at Luohu Port involving a single individual;

    • Frequent scams using fake licenses: Posing as a 'collaborating institution of the Monetary Authority' to promote high-interest financial products, has already swindled over HK$200 million.

  2. Compliance pathway costs soar

    • 6% handling fee significantly erodes profits, small transactions are almost unprofitable;

    • Licensed platforms only serve professional investors, retail investors face restrictions.

Breakthrough direction: Three realistic pathways

  1. Switch to licensed assets

    • Fosun and other institutions will launch compliant HKD stablecoin FFH on August 20, its ecological token FST may present short-term arbitrage opportunities;

  2. Withdraw non-licensed assets

    • The Monetary Authority has locked down 117,000 suspicious wallets, with mass freezes starting from September 1;

  3. Seize early benefits

    • HSBC plans to launch 'HK Stock-USDT instant exchange' on September 1, with a 0.1% rate for accounts opened in the first week.

Regulatory trend: Safety outweighs innovation

Hong Kong opts for a strict regulatory model (in contrast to Singapore's flexible sandbox and the US's innovation exemptions), with the core aim of preventing money laundering and financial risks. The cost is:

  • DeFi protocols cannot access compliant stablecoins;

  • Internet giants (JD, Ant Group) face difficulties in obtaining licenses due to cross-border data issues.

Retail investor operation list
Act immediately: Transfer assets from unlicensed platforms to compliant wallets
Within 72 hours: Clear underground USDT positions to avoid freeze risks
Medium to long-term focus: Progress of licensed stablecoin launches and access for traditional institutions like HSBC

#主流币轮动上涨 #ETH突破4600 #机构疯抢以太坊

Continued focus: bnb skl kmno