Hong Kong’s Stablecoin Ordinance, set for enforcement on August 1, will criminalize unauthorized promotions of fiat-pegged stablecoins, with penalties including fines and imprisonment.
The HKMA’s Wednesday announcement highlighted concerns over market manipulation, citing recent cases where stablecoin hype fueled abnormal trading activity. CEO Eddie Yue stated that the law aims to foster credibility in the sector while deterring reckless speculation.
With the new penalties, Hong Kong joins a growing list of jurisdictions imposing stricter oversight on stablecoins amid fears of investor harm.
