On August 1, Hong Kong authorities introduced a highly anticipated regulatory framework targeted at overseeing fiat-based stablecoin operations in the Asian country. While this regime may be considered stringent by mandating more requirements for stablecoin operators, the government’s recognition of this class of digital assets appears highly encouraging for investors.
Hong Kong Fintech Raise Over $1.5-B To Fund Stablecoin, Crypto Business
According to a recent Reuters report, Hong Kong’s new stablecoin regime has sparked a wave of fundraising activity among fintech companies. Notably, the Asian nation now requires all intending stablecoin issuers to obtain a license from the Hong Kong Monetary Authority (HKMA). Meanwhile, existing businesses have been granted a six-month transitional grace period.
Beyond licensing, Hong Kong’s new stablecoin regulations are expected to also cover other operational areas, including reserve asset management, anti-money laundering measures, and redemption systems etc. Following the enforcement of this new regime, Reuters reports that a minimum of 10 listed Hong Kong Fintechs have raised $1.5 billion via share placements with intentions of investing in stablecoins, blockchain payment systems, and regular cryptocurrencies.
A prominent company in this group is the digital asset and blockchain company OSL Group, which has now completed $300 million of equity financing in late July. Other notable names include Dmall Inc. and leading AI company SenseTime Group.
Asian Markets Spurred On By Trump’s Pro-Crypto Momentum
In other news, Bloomberg reports that recent regulatory and investment actions in Hong Kong and other Asian markets can be linked to US President Donald Trump’s continuous efforts to build a crypto-friendly environment in the US. On July 18, Trump signed the first major US digital asset regulatory bill, i.e., the GENIUS Act, aimed at creating a credible regulatory framework for stablecoins.
Aside from Hong Kong, nations such as South Korea, Malaysia, Thailand, and the Philippines are experiencing high levels of interest in Asian-pegged stablecoins despite concerns of capital outflows. This is because the majority of stablecoins valued at $256 billion are still pegged against the US dollar.
In taking South Korea as a case sample, Bloomberg states that transactions involving USDC, USDT, and USDS on Korean exchanges reached about 57 trillion won ($41 billion) in the first quarter of 2025 alone. In resolving this potential issue, the ruling Democratic Party has since proposed the Digital Asset Basic Act, which would enable local companies to legally issue won-based stablecoins. However, not all lawmakers are in support of this initiative.
