Hong Kong to Enforce Stablecoin Ordinance Starting Aug. 1

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…