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

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AuthorBlock Tao

Aug 1, 2025 6:07 AM

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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.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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