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
Crypto advertising in other jurisdictions
Like Hong Kong, other jurisdictions, such as the European Union, have prohibited unlicensed companies from promoting crypto products.
The Markets in Crypto-Assets Regulation (MiCA) imposes more substantial financial fines of at least 5 million euros (around $5.8 million) or 3% to 12.5% of companies’ annual turnover for entities or individuals found violating its provisions. However, the regulations do not include imprisonment.
In the United Kingdom, the Financial Conduct Authority (FCA) has struggled to enforce its rules. As of January, only about half of flagged illegal crypto ads were taken down.
Hong Kong’s approach is one of the strictest to date, adding criminal penalties to its consumer protection toolkit as it seeks to balance fintech innovation with regulatory oversight.
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