Hong Kong Sounds Alarm on Unapproved Digital Yuan Stablecoins Amid Market Surge

The Hong Kong Monetary Authority (HKMA) has firmly denied social media rumours that the world’s first offshore yuan-pegged stablecoin has been issued in the ￰1￱ a public statement the regulator labeled the reports as “false news” and urged investors to remain vigilant against unverified claims that could mislead the ￰2￱ warning comes amid heightened global interest in stablecoins particularly those linked to the Chinese yuan as traders and developers look for new forms of liquidity in the digital asset ￰3￱ officials stressed that no entity has been granted a license to issue a yuan-pegged stablecoin in Hong ￰4￱ Ordinance Now in Effect The HKMA reiterated that under the Stablecoin Ordinance

which formally took effect on August 1 any company seeking to issue a stablecoin in Hong Kong—or promote related activities to the local public—must secure an official license from the ￰5￱ law requires issuers of “referenced stablecoins” to demonstrate compliance with strict operational and transparency standards before offering products to the ￰6￱ stressed at present no license has been ￰7￱ a result any claims of yuan-pegged stablecoin issuance or marketing in Hong Kong are not only misleading but also illegal under the new regulatory ￰8￱ Surveillance and Enforcement Measures The HKMA confirmed it is actively monitoring trading activity involving stablecoins and will take enforcement actions against those found in violation of the ￰9￱ said they will rely on factual evidence and supporting documentation before moving forward with penalties or further ￰10￱ authority emphasized its intent to safeguard the stability of Hong Kong’s financial markets as the city positions itself as a regulated hub for digital ￰11￱ participants were reminded that compliance with the licensing regime is a prerequisite for engaging in stablecoin issuance and ￰12￱ Urged to Verify Information In addition to enforcement

the HKMA is calling on the public to exercise caution and verify information directly through its official website where a public register of licensed stablecoin issuers is ￰13￱ register required under Article 21 of the Stablecoin Ordinance provides real-time updates on authorized ￰14￱ HKMA warned that misleading promotions not only misrepresent the regulator’s stance but could also expose investors to significant financial ￰15￱ statement reflects ongoing efforts by Hong Kong authorities to temper speculative frenzy around digital assets while promoting transparency and investor ￰16￱ stablecoins continuing to attract global attention

the HKMA’s latest warning underscores the importance of clarity regulation and responsible participation in the evolving digital finance ￰17￱ Releases Stablecoin Licensing Framework In July HKMA officially launched its long-anticipated licensing regime for stablecoin ￰18￱ Kong is launching its stablecoin licensing regime — new rules take effect August 1. #stablecoins #HKMA ￰0￱ — ￰19￱ (@cryptonews) July 29

2025 The latest update shows Hong Kong’s intention to regulate the growing stablecoin sector offering clarity for market participants while reinforcing investor protection and financial ￰20￱ HKMA published two sets of documents: the “Guidelines on the Supervision of Licensed Stablecoin Issuers” and the “Guidelines on Combating Money Laundering and Counter-Terrorist Financing.” These were accompanied by summary notes detailing licensing application procedures and transitional provisions for existing ￰21￱ interested in applying must contact the HKMA by August 31 to receive early-stage feedback with a submission deadline of September 30 for those ready to proceed.