Hong Kong Bans Unlicensed Stablecoin Advertising Starting Aug 1

Hong Kong Bans Unlicensed Stablecoin Advertising Starting Aug 1

Starting August 1, 2025, Hong Kong imposes criminal penalties for unlicensed stablecoin marketing under new HKMA regulations.

Hong Kong criminalizes unlicensed stablecoin promotions under its new “Stablecoin Issuer Licensing Regime,” requiring all fiat-backed token promoters to hold HKMA licenses.

Hong Kong’s legislature passed the stablecoin bill on May 21, establishing a licensing framework for entities issuing fiat-referenced tokens in or from the city. Entities must obtain HKMA licenses and meet reserve, redemption, and risk-management standards before promoting or issuing tokens.

The HKMA released full licensing details on July 25, with enforcement beginning August 1. Violators face criminal penalties including fines and imprisonment.

Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, said the ordinance follows the principle of “same activity, same risks, same regulation” and adopts a risk-based approach to safeguard investors and maintain market stability.

The regime mandates that licensed issuers hold 100% of token value in low-risk assets such as government securities and adhere to anti-money laundering and capital adequacy requirements. Licensed entities must maintain operational controls and segregated reserve asset accounts.

The law builds on HKMA’s 2023 consultation paper and sandbox program that tested compliance frameworks with three pilot issuers. Hong Kong aims to strengthen its digital finance competitiveness.

Criminal penalties apply to any promotion of unlicensed stablecoins, including advertising, marketing materials, and public offerings. The HKMA will maintain a public registry of licensed issuers and their approved tokens.

Current stablecoin operators must apply for licenses by August 1 or cease Hong Kong operations. The HKMA hasn’t disclosed application processing times or fees.

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