Summary
- Hong Kong financial authorities announced plans to impose up to 6 months imprisonment and fines for unauthorized stablecoin promotional activities starting next month.
- The Hong Kong Monetary Authority warned that investing in unlicensed virtual asset products involves legal risks.
- It has been reported that about 50 companies have applied for stablecoin licenses so far.
Hong Kong's financial authorities plan to impose up to 6 months of imprisonment and a fine of HK$50,000 for unauthorized stablecoin promotional activities starting next month.
On the 25th (local time), the virtual asset (cryptocurrency) specialized media outlet iHodl.com reported, "The Hong Kong government will enforce the new Stablecoin Ordinance starting from the 1st of next month," and added, "Promoting unauthorized stablecoins to consumers will be regarded as illegal and subject to criminal penalties."
Previously, the Hong Kong Monetary Authority (HKMA) issued an official statement on the 24th, warning, "Investing in unlicensed virtual asset-related products carries legal risks," and advised, "Investors should not approach unauthorized projects."
Eddie Yue, Chief Executive of the HKMA, stated, "Recently, expectations for stablecoins have been artificially inflating the overall market prices and trading volumes," and emphasized, "It is necessary to curb speculative fervor and seek market stability."
Meanwhile, ahead of the enforcement of the ordinance, it is reported that about 50 companies have already applied for stablecoin licenses.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
