🚨 Hong Kong Cracks Down on Unlicensed Stablecoin Promotions Ahead of New Law 🚨

Hong Kong is taking a hard stance on stablecoin hype, declaring that starting August 1, promoting unlicensed fiat-referenced stablecoins (FRS) to the public will officially be a crime. As the city prepares to launch its long-awaited Stablecoins Ordinance, the Hong Kong Monetary Authority (HKMA) is tightening the reins to protect retail investors from market manipulation and fraudulent schemes. HKMA chief Eddie Yue issued a stern warning this week, cautioning against the “frothy” enthusiasm flooding the market. In a blog post, Yue emphasized that only firms licensed by the HKMA will be allowed to market stablecoins, adding that some recent promotions have already come dangerously close to illegal behavior. The crackdown hasn’t slowed interest, though—over 40 companies have contacted regulators to explore licensing, despite many lacking solid business models or even basic risk frameworks. As Hong Kong positions itself as a regulated Web3 hub, the message is clear: comply—or get out. 🛑📉💼

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