Hong Kong’s new crypto rules are causing a stir, and Fintech companies are jumping in with both feet.
A Gold Rush for Stablecoins
Hong Kong recently introduced strict rules for stablecoins—digital currencies pegged to a real-world asset like the US dollar. While these rules are tough, they’ve also given the green light to a huge wave of investment. Fintech firms are lining up to get a piece of the action, raising a whopping $1.5 billion to fund stablecoin and crypto projects. They need licenses from the Hong Kong Monetary Authority (HKMA) to operate, but existing companies have a six-month grace period. The new rules cover everything from managing reserves to preventing money laundering.
Companies like OSL Group (which just raised $300 million), Dmall Inc., and SenseTime Group are leading the charge.
Trump’s Influence and Asian Crypto Adoption
The activity in Hong Kong isn’t happening in a vacuum. Bloomberg suggests that President Trump’s pro-crypto stance in the US is fueling the Asian market. The GENIUS Act, a US bill aimed at regulating stablecoins, seems to have encouraged other Asian countries to take a closer look at crypto.
South Korea, Malaysia, Thailand, and the Philippines are all showing increased interest in stablecoins, even though there are worries about money leaving the country. This is mainly because most stablecoins ($256 billion worth!) are pegged to the US dollar. South Korea, for example, saw a massive $41 billion in transactions involving USDC, USDT, and USDS in just the first quarter of 2025. To address this, South Korea’s Democratic Party is pushing for a new law that would let local companies create stablecoins pegged to the South Korean won. However, this isn’t universally supported.