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On August 1, Hong Kong officials unveiled a much-anticipated regulatory structure aimed at managing fiat-linked stablecoin activities in the Asian nation. While this framework may be perceived as rigorous due to its increased requirements for stablecoin providers, the government’s acknowledgment of this category of digital assets seems extremely promising for investors.
Hong Kong Fintech Secures Over $1.5-B To Support Stablecoin, Crypto Ventures
As per a recent Reuters report, Hong Kong’s fresh stablecoin regulations have ignited a surge of fundraising efforts among fintech firms. Significantly, the Asian country now mandates that all prospective stablecoin issuers acquire a license from the Hong Kong Monetary Authority (HKMA). Concurrently, existing enterprises have received a six-month transitional grace period.
Aside from licensing, Hong Kong’s updated stablecoin guidelines are also anticipated to encompass various operational aspects, including reserve asset management, anti-money laundering protocols, and redemption mechanisms among others. Following the implementation of this new framework, Reuters notes that at least 10 listed Hong Kong fintechs have amassed $1.5 billion through share offerings, aimed at investing in stablecoins, blockchain payment solutions, and traditional cryptocurrencies.
A key player in this cohort is the digital asset and blockchain firm OSL Group, having finalized $300 million in equity financing by late July. Other prominent names include Dmall Inc. and leading AI enterprise SenseTime Group.
Asian Markets Energized By Trump’s Pro-Crypto Drive
In additional developments, Bloomberg reports that the recent regulatory and investment initiatives in Hong Kong and other Asian regions can be correlated with US President Donald Trump’s persistent endeavors to cultivate a crypto-friendly climate in the United States. On July 18, Trump approved the first significant US digital asset regulatory legislation, known as the GENIUS Act, aimed at establishing a credible regulatory environment for stablecoins.
Apart from Hong Kong, countries like South Korea, Malaysia, Thailand, and the Philippines are witnessing heightened interest in Asian-pegged stablecoins despite apprehensions about capital outflows. This is attributable to the fact that the majority of stablecoins, valued at $256 billion, remain pegged to the US dollar.
Taking South Korea as an example, Bloomberg indicates that transactions involving USDC, USDT, and USDS on Korean exchanges reached approximately 57 trillion won ($41 billion) during the first quarter of 2025 alone. To address this emerging concern, the ruling Democratic Party has proposed the Digital Asset Basic Act, which aims to allow local firms to legally issue won-pegged stablecoins. However, not all legislators endorse this initiative.
Featured image from Mappr, chart from Tradingview
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