Hong Kong to Criminalize Unlicensed Stablecoin Promotion Starting August 1

According to a report by Jinse Finance, Hong Kong will begin enforcing the Stablecoin Ordinance on August 1, which stipulates that offering or promoting unlicensed fiat-referenced stablecoins (FRS) to retail investors is illegal. The new law imposes criminal penalties of up to a level 5 fine of HKD 50,000 (approximately USD 6,300) and a maximum prison sentence of six months. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, warned that the upcoming regulations are intended to bring credibility and stability to the emerging stablecoin industry while protecting investors from fraud and excessive speculation.