Hong Kong to criminalize unlicensed stablecoin promotions from Aug. 1
Starting Aug. 1, offering or advertising unlicensed stablecoins to retail investors in Hong Kong could get violators a 50,000 Hong Kong dollar fine and six months in jail.
Hong Kong will start enforcing its Stablecoin Ordinance on Aug. 1, making it illegal to offer or promote unlicensed fiat-referenced stablecoins (FRS) to retail investors.
The new law introduces criminal penalties of up to a level five fine of 50,000 Hong Kong dollars (about $6,300) and a maximum sentence of six months imprisonment.
The Hong Kong Monetary Authority (HKMA), the special administrative region’s central bank, issued a public warning on Wednesday, urging investors to steer clear of unlicensed offerings to avoid inadvertently breaking the law.
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