Hong Kong’s Stablecoin Ordinance Goes Live — Crypto-Linked Stocks Plunge Across the Board

TradingKey – On Friday, August 1, Hong Kong officially enacted its Stablecoin Ordinance, triggering a sharp sell-off in stablecoin-related equities.

Midday trading saw widespread declines:

• Linklogis (HK.09959): -11%
• OSL Group (HK.00863): -10%
• Golden Surge Investment (HK.01328): -9%
• Guotai Junan International (HK.01788): -8%
• ZhongAn Online (HK.06060): -7%+

The new law requires any entity issuing stablecoins in Hong Kong to obtain a license, overseen by the Hong Kong Monetary Authority (HKMA). Issuers must meet strict standards, including:

• 100% liquid asset backing
• Robust risk management and AML compliance
• Local corporate presence and paid-up capital of HK$25 million

Major institutions are already lining up to apply:

• Bank of China (Hong Kong) and Standard Chartered (Hong Kong) are expected to be among the first movers
• Chinese state-owned banks, central SOEs, and tech giants with payment licenses are reportedly preparing applications

Over 50 firms are said to be readying submissions, with first approvals expected by early 2026.