The Hong Kong Financial Authority (HKMA) has warned in opposition to extreme hype round stablecoins and expressed considerations about stablecoin hypothesis out there. The considerations have emerged simply days earlier than Hong Kong’s stablecoin ordinance, which can come into impact from 1 August 2025.
Calling the ‘stablecoin craze’ an over-conceptualization, HKMA CEO Eddie Yue mentioned, “We have to guard in opposition to extreme market and public opinion hypothesis. Not too long ago, there are some phenomena that deserve our consideration.”
“Discussions round stablecoins are likely to concentrate on their disruptive results on conventional finance, particularly the fee system. Nonetheless, as soon as it’s time to transfer from the digital to the actual, from the conceptual and theoretical stage to the applying eventualities and particular preparations, there will likely be a transparent hole,” he stated in his blog post dated 23 January 2025.
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Hong Kong Customs Officers Arrest Two For Laundering $146.5 Million
In accordance with a South China Morning Publish printed on 24 July 2025, Hong Kong customized officers arrested two males for smuggling money, making suspicious transactions, apparently together with with Tether stablecoin USDT.
“A Customs and Excise Division spokesman mentioned that an investigation into the pair discovered that they had smuggled money out of town,” the information report acknowledged. “An insider mentioned the suspects additionally made transactions utilizing the stablecoin USDT and common forex, with officers discovering the supply of funds to be questionable.”
Tether as soon as once more within the highlight for cash laundering. Will this be the brand new regular?
2 arrested in Hong Kong over laundering HK$1.15 billion in case involving stablecoin
Males accused of utilizing transactions and cash-smuggling operations to launder funds #fintech #tech… pic.twitter.com/erDbplkyQ2
— Richard Turrin (@richardturrin) July 23, 2025
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Monetary Secretary Confirms Stablecoin Licenses To Roll Out Beginning August
To grow to be world’s first regulated regime for stablecoins, Kong Kong mentioned that it’ll implementing the stablecoin ordinance in August 2025. The transfer got here after Hong Kong’s Legislative Council passage. It mandates entities or people issuing a fiat-referenced stablecoin (FRS) or Hong Kong Greenback-pegged tokens throughout the administration to acquire licenses from the HKMA.
Solely licensed establishments can supply FRS, enabling retail traders to entry stablecoins. The laws states that these guidelines purpose to guard the general public and the traders. Moreover, to minimise fraudulent behaviour, the ordinance solely permits adverts for licensed FRS issuers.
In case you had been questioning why stablecoin laws was rushed by way of tonight…
Beginning August 1, 2025, Hong Kong will launch an offshore Renminbi (RMB) stablecoin program, that goals to reinforce RMB use in worldwide commerce and likewise set up Hong Kong as a digital… https://t.co/T5MX4pQlJ8 pic.twitter.com/DUew8iCUcf
— Subjective Views (@subjectiveviews) July 18, 2025
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Key Takeaways
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The considerations round stabelcoins emerged simply days earlier than implementations of Hong Kong’s stablecoin ordinance.
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Hong Kong customized officers arrested two males for smuggling money, making suspicious transactions, together with with Tether stablecoin.
The publish Hong Kong Warns Against ‘Stablecoins Craze’ As Two Arrested In $146.5M Laundering Bust appeared first on 99Bitcoins.
