The Hong Kong Monetary Authority (HKMA) has firmly denied social media rumours that the world’s first offshore yuan-pegged stablecoin has been issued in the city.
In a public statement the regulator labeled the reports as “false news” and urged investors to remain vigilant against unverified claims that could mislead the market.
The warning comes amid heightened global interest in stablecoins, particularly those linked to the Chinese yuan, as traders and developers look for new forms of liquidity in the digital asset sector. HKMA officials stressed that no entity has been granted a license to issue a yuan-pegged stablecoin in Hong Kong.
Stablecoin Ordinance Now in Effect
The HKMA reiterated that under the Stablecoin Ordinance, which formally took effect on August 1, any company seeking to issue a stablecoin in Hong Kong—or promote related activities to the local public—must secure an official license from the regulator.
The law requires issuers of “referenced stablecoins” to demonstrate compliance with strict operational and transparency standards before offering products to the market.
HKMA stressed at present, no license has been awarded. As a result, any claims of yuan-pegged stablecoin issuance or marketing in Hong Kong are not only misleading but also illegal under the new regulatory framework.
Market Surveillance and Enforcement Measures
The HKMA confirmed it is actively monitoring trading activity involving stablecoins and will take enforcement actions against those found in violation of the ordinance. Regulators said they will rely on factual evidence and supporting documentation before moving forward with penalties or further investigations.
The authority emphasized its intent to safeguard the stability of Hong Kong’s financial markets as the city positions itself as a regulated hub for digital assets. Market participants were reminded that compliance with the licensing regime is a prerequisite for engaging in stablecoin issuance and promotion.
Public Urged to Verify Information
In addition to enforcement, the HKMA is calling on the public to exercise caution and verify information directly through its official website, where a public register of licensed stablecoin issuers is maintained.
The register, required under Article 21 of the Stablecoin Ordinance, provides real-time updates on authorized entities.
The HKMA warned that misleading promotions not only misrepresent the regulator’s stance but could also expose investors to significant financial losses. The statement reflects ongoing efforts by Hong Kong authorities to temper speculative frenzy around digital assets while promoting transparency and investor protection.
With stablecoins continuing to attract global attention, the HKMA’s latest warning underscores the importance of clarity, regulation, and responsible participation in the evolving digital finance ecosystem.
HKMA Releases Stablecoin Licensing Framework
In July, HKMA officially launched its long-anticipated licensing regime for stablecoin issuers.
The latest update shows Hong Kong’s intention to regulate the growing stablecoin sector, offering clarity for market participants while reinforcing investor protection and financial integrity.
The HKMA published two sets of documents: the “Guidelines on the Supervision of Licensed Stablecoin Issuers” and the “Guidelines on Combating Money Laundering and Counter-Terrorist Financing.”
These were accompanied by summary notes detailing licensing application procedures and transitional provisions for existing issuers. Institutions interested in applying must contact the HKMA by August 31 to receive early-stage feedback, with a submission deadline of September 30 for those ready to proceed.
The post Hong Kong Sounds Alarm on Unapproved Digital Yuan Stablecoins Amid Market Surge appeared first on Cryptonews.
