Stocks of crypto companies in Hong Kong have witnessed a sharp increase as the implementation of the new stablecoin licensing framework approaches on August 1, 2025. This has ignited investor interest in the city's crypto initiatives.
Impact of New Regulations on the Market
The Hong Kong Monetary Authority (HKMA) announced that stablecoin issuers must obtain licenses under the new regime. This step is aimed at regulating fiat-backed stablecoins and strengthening reserve mechanisms for liquidity. The Legislative Council's approval of the stablecoin law in May 2025 marked a significant milestone in establishing oversight over crypto assets.
Crypto Companies' Stocks Amid Changes
Shares of Guotai Junan International, a Chinese brokerage listed on the Hong Kong Stock Exchange, increased by 16% after receiving approval to offer cryptocurrency trading services. OSL, a licensed crypto exchange, saw a 12.2% rise, while Dmall Inc., a retail digitalization firm applying for a stablecoin license, rose by 8.9%.
Future of Stablecoins and Hong Kong's Crypto Ecosystem
The new stablecoin initiative has attracted attention from major Chinese tech firms, such as JD.com and Ant Group, who are lobbying for regulatory approval to issue such tokens. This highlights Hong Kong's strategic role in the offshore yuan market, while mainland China continues to ban crypto trading and mining.
The cryptocurrency market in Hong Kong is poised for significant changes with the implementation of the new stablecoin licensing regime, creating new potential for growth and innovation in the region.
