Hey folks! #HongKong ’s new stablecoin rules: what happened and how it impacted the local market?

The #stablecoin licensing regime kicked in on August 1, 2025. The reaction was instant:

📉 Market size fell 32.94% in the first week. 

💱 $USDT transfer volume for store-based providers dropped by 43.20%. 

🏢 Non-store providers saw a 30.65% decrease.

Why did it happen? 

➡️ Strict rules forced many #OTC desks to pause or shut down.

➡️ New ID requirements removed anonymity (key OTC driver).

➡️ Market is in a compliance-driven “reset” phase.

While retail OTC volumes are down, the rules are designed to make Honk Kong a trusted global hub. Big players like #StandardChartered are already moving to issue regulated stablecoins under the new framework.