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Keep Calm: Hong Kong’s Stablecoin Rules Explained

Keep Calm: Hong Kong’s Stablecoin Rules Explained

Let’s be clear about Hong Kong’s new stablecoin regime. After months of poring over statutes, speaking with regulators, and sifting the louder myths from the quieter facts, the signal is finally audible through the noise. Much of the commentary mistakes a drizzle for a monsoon. If you’ve been fretting about whether Tether suddenly needs a Hong Kong license, or whether buying USDT at a neighborhood shop has become illicit, exhale. What follows is a plain-English guide to what the rules actually do—no hedging, no techno-mystique, just the architecture as written. Think of it as a field note from someone who’s read the fine print so you don’t have to.

Here’s the frame: the Stablecoins Ordinance took effect on August 1. Serious teams moved ahead of that date because the Hong Kong Monetary Authority (HKMA) spent years laying the groundwork and finalized its guidance only recently. The core principle is straightforward. If you’re issuing new fiat-referenced stablecoins—think USDT or USDC-style instruments pegged to a sovereign currency—you need the HKMA’s blessing. No license, no minting in Hong Kong. Full stop.

The biggest misconception is scope. These rules are not a blanket on every imaginable interaction with a stablecoin. They are tightly aimed at issuance—the moment a token is created and enters circulation. When the law describes “regulated activity,” it means minting, not downstream trading. If baking bread is issuance, groceries and restaurants are secondary markets. The ordinance regulates the bakery, not the bodega. Swapping USDT at a Hong Kong OTC desk or trading it on a local exchange does not, by itself, breach the rulebook. A great many people have been panicking over the wrong thing.

Which brings us to Tether and Circle, the familiar elephants in the room. Do USDT and USDC need Hong Kong licenses? No. And it’s not a matter of corporate intransigence; it’s baked into the statute. The ordinance targets stablecoins issued in Hong Kong and pegged to the Hong Kong dollar. USDT and USDC are minted offshore and reference the U.S. dollar. Unless those firms decide to launch a brand-new HKD-pegged product from within Hong Kong—a prospect for which they’ve shown no appetite—they fall outside the framework as written. That’s not defiance; it’s design.

So what counts as “in Hong Kong”? Not where someone clicks “mint” on a laptop. The analysis looks at the whole enterprise: legal domicile, where operations are run, where reserves are held, and how and to whom the product is marketed. A Cayman-registered firm that runs its day-to-day from a central office, holds reserves with local institutions, and pushes its product to Hong Kong users is very likely within the HKMA’s remit. Blockchains may be borderless; businesses are not.

That naturally leads to the term “active promotion.” The Securities and Futures Commission (SFC) has long drawn a line here: marketing to Hong Kong residents without the right approvals is risky. But “active promotion” is more than merely having a website that loads in Kowloon. It looks like targeted campaigns at Hong Kong users, accepting local payment rails, publishing Chinese-language materials aimed at this market, running roadshows or community events here, and regularly pitching local platforms or investors. If your sales team courts Hong Kong exchanges and you host meetups in central, that’s active promotion. If your site is globally visible but you do nothing to cultivate Hong Kong users, you’re far less exposed. Intent matters; you can’t “accidentally” market to Hong Kong.

Another point lost in the rumor mill: the HKMA can’t conjure new obligations by fiat. Any expansion of regulated activities must be announced through the Hong Kong Gazette. This is not creeping, back-channel rulemaking. It’s a transparent process with public notice. So if someone warns you that “OTC desks might be randomly banned next month,” they’re trading in speculation, not law. The ordinance sets the perimeter; widening it requires due procedure.

On licensing, this is where theory meets practice. Unlike many financial licenses, you don’t just download an application packet and hit “submit.” You first sit down—formally—with the HKMA. That pre-application conversation is a filter. Supervisors will test your model: how you mint and redeem, how reserves are safeguarded, how audits work, and how you’d handle stress. Why the gatekeeping? Because Hong Kong doesn’t intend to franchise dozens of interchangeable issuers. The HKMA has said as much: the market cannot sustain a crowd of “USDC-but-with-a-new-name” projects. They want serious operators with real systems, not façades.

Teams that have gone through these preliminaries report a consistent hierarchy of concern: protect users first, everything else second. Reserve quality sits at the top—cash and cash equivalents that are liquid, high-grade, and cleanly custodied. Segregation is scrutinized: are customer assets bankruptcy-remote? Redemption mechanics are stress-tested: can users get out, at par, under pressure? One applicant spent multiple meetings walking through their audit pipeline—frequency, independence, scope. The message is blunt: if you cannot prove, not merely promise, that your token is fully and transparently backed, don’t queue up.

What about non-HKD stablecoins? The current rules are deliberately narrow: they explicitly target HKD-pegged products. A U.S. dollar-referenced coin issued from Hong Kong is not automatically captured unless it’s being actively marketed here as a payment instrument. That leaves a gray band that the HKMA will almost certainly address over time. For now, a euro-pegged token issued in Hong Kong but aimed solely at European users likely sits outside the scope. Start touting it to Hong Kong consumers as a way to pay for dim sum, and you’ve crossed into regulated territory.

This targeted approach distinguishes Hong Kong from the EU’s MiCA, which sweeps far more broadly. Hong Kong’s priority is the stability and credibility of the Hong Kong dollar. That’s strategically sensible. You do not want a proliferation of unofficial “digital HKD”s fragmenting the monetary system. It also means day-to-day usage of the big, dollar-referenced incumbents—USDT among them—remains largely unaffected. Markets haven’t convulsed because, for most users, little changes in the near term. The sharper impact will be on would-be issuers of local-currency tokens.

Timing matters. The ordinance cleared LegCo in May and took legal effect on August 1. With the law now in force, the pre-application and formal filing process is underway. Expect the first approvals, if any, to arrive no earlier than early 2026. The HKMA has signaled—as clearly as regulators ever do—that speed will not be the metric. That’s a feature, not a bug. Fast-tracked licensing has gone poorly elsewhere; Hong Kong is opting for methodical vetting.

For ordinary residents, the near-term impact is modest. Your ability to buy USDT or USDC is not suddenly curtailed. The meaningful change will come if local firms begin offering HKD-pegged tokens for everyday payments. Those products will require HKMA approval, and rightly so. Imagine taxi apps, supermarkets, or utility providers each pushing their own “digital HKD.” Without guardrails, you’d get fragmentation and confusion. The ordinance is an anti-chaos measure as much as a pro-innovation one.

A final plea against absolutism: this framework is neither an existential threat to crypto nor a magic wand for financial modernization. It is a pragmatic, bounded attempt to protect monetary stability while creating a lane for credible innovation. When the HKMA says the market can support only a handful of issuers, it isn’t stinginess; it’s prudence. You don’t need twenty digital Hong Kong dollars. You need one or two that the public can trust.

The deeper story is cultural. Hong Kong is pivoting from crypto spectacle to institutional plumbing. After the carnage of 2022, the city is choosing guardrails first and productization later. That may feel slow to the “move fast and break things” set, but ask anyone burned by opaque reserves and imploding pegs whether deliberation is a vice or a virtue. This is what learning looks like.

So, practical advice. First, map your activity honestly against the ordinance: are you issuing or merely facilitating use? Second, if issuance is anywhere in scope, start or continue the pre-application dialogue with the HKMA now; it’s already in effect. Third, treat Telegram lore and X threads as background noise and rely on the published guidance. The statute itself reads like legal spaghetti, but the HKMA’s plain-language materials are, refreshingly, actually plain.

The regime is not perfect—no regime is—but it is necessary. Stablecoins now function as critical rails for the broader digital-asset economy; leaving them ungoverned invites familiar disasters. By focusing on the HKD, Hong Kong is protecting its monetary core without strangling optionality elsewhere. The real test will come when the first applications are approved or rejected. That’s when we’ll see just how tight the screws really are. Until then, trade the anxiety for accuracy. When the subject is money, clarity isn’t a luxury—it’s the whole point. We’ve done enough guessing. It’s time to deal in facts.

 

Source: https://intpolicydigest.org/keep-calm-hong-kong-s-stablecoin-rules-explained/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Wall street soars, crypto surges: 2025 market trends explained

Wall street soars, crypto surges: 2025 market trends explained

As I reflect on the state of global financial markets in mid-May 2025, I’m struck by the delicate balance of hope and caution that defines this moment. The numbers tell a story of resilience and volatility: Wall Street’s indices show mixed signals, with the tech-heavy Nasdaq climbing 0.7 per cent, the S&P 500 inching up 0.1 per cent, and the Dow Jones slipping 0.2 per cent.

Across the Atlantic, European markets are similarly subdued, with the FTSE 100, DAX, and Stoxx 600 all posting modest declines. Commodities like spot gold, Brent crude, and iron ore are trending downward, while Bitcoin, ever the wildcard, nudges up slightly to US$103,780.

These figures, while seemingly disparate, weave a narrative of a world grappling with the aftermath of a tumultuous economic period, buoyed by breakthroughs in US-China trade relations and tempered by lingering concerns about inflation, overbought markets, and shifting investor sentiment. As someone who’s spent years observing markets, I see this as a pivotal moment—one where opportunity and risk are two sides of the same coin.

Let’s start with Wall Street, where the mood feels cautiously optimistic. The recent news of slashed tariffs between the US and China has been a shot in the arm for investors. After months of trade war rhetoric and economic uncertainty, the agreement to reduce tariffs—US tariffs on Chinese goods dropping to 30 per cent from as high as 145 per cent, and China’s retaliatory tariffs falling to 10 per cent from 125 per cent—has sparked a rally that’s pushed the S&P 500 back into positive territory for 2025 for the first time since March.

The Nasdaq, driven by its tech giants, is now within striking distance of erasing its year-to-date losses, having surged 30 per cent from its April low. This turnaround is nothing short of remarkable, especially considering the headwinds of early 2025: fears of a US economic slowdown, tariff-induced inflation, and a tech sector battered by concerns over AI hype and overvaluation.

Yet, here we are, with stocks like Nvidia and Tesla leading the charge, each gaining over four per cent today after a five per cent surge yesterday. Alphabet, Microsoft, and Meta are also riding the wave, though Apple, Amazon, and Broadcom have hit a slight speed bump.

From my perspective, this tech-led rally is both exhilarating and unnerving. Nvidia’s dominance in the AI chip space and Tesla’s electric vehicle innovations have made them Wall Street darlings, but their meteoric rises raise questions about sustainability. The S&P 500’s 14-day Relative Strength Index (RSI) is signalling overbought conditions, a warning that the market may be due for a breather. I can’t help but feel a twinge of déjà vu, recalling past tech booms that promised endless growth only to stumble when valuations outpaced fundamentals.

Still, the broader economic context offers some reassurance. A government report showing US inflation at a four-year low in April suggests the Federal Reserve might have more room to manoeuvre, potentially pausing rate hikes or even signalling cuts later in 2025. Fed Chair Jerome Powell’s upcoming remarks will be crucial, as investors hang on his every word for clues about monetary policy. For now, I’m cautiously bullish on tech, but I’d be keeping a close eye on earnings reports and macroeconomic data to gauge whether this rally has legs.

Across the pond, European markets are less enthusiastic. The FTSE 100, DAX, and Stoxx 600 each slipped by 0.2 per cent to 0.5 per cent, reflecting a broader pullback after a strong run fuelled by optimism over global trade progress. The Stoxx 600’s decline was led by consumer goods and healthcare, though banks and industrials held up better, buoyed by rising bond yields and infrastructure hopes. Standout performers like Burberry, which soared 17 per cent after a stellar Q4 update, show that individual companies can still shine amid a lackluster market.

Conversely, Alstom’s 17 per cent plunge on weak guidance underscores the risks of disappointing investors in a jittery environment. As someone who’s always admired Europe’s economic diversity, I find this mixed performance unsurprising. The continent is navigating its own challenges—Germany’s industrial output is up, but the UK housing market is slowing, and Norway’s central bank is holding rates steady as inflation lingers above target.

The prospect of US tariffs easing is a positive, but European investors seem to be locking in gains rather than betting on a sustained rally. I’d look for opportunities in undervalued sectors like industrials, where long-term growth potential might outweigh short-term volatility.

Commodities paint a more sobering picture. Spot gold, down 0.1 per cent to US$3,182 per ounce, is stabilising after a 2.3 per cent drop that took it to a one-month low. This pullback, driven by more substantial bond yields and a resilient US dollar, has dented gold’s safe-haven appeal. Brent crude, falling 1.3 per cent to US$65.25 per barrel, is reeling from profit-taking and concerns about demand recovery, especially after a report showed US crude inventories rising significantly. Iron ore, down 0.6 per cent to US$101.15 per tonne, is holding up better, supported by optimism about Asian construction demand, particularly in China.

As someone who’s always viewed commodities as a barometer of global economic health, I know these declines signal caution. The US-China trade deal should, in theory, boost demand for oil and metals, but the market seems skeptical about the pace of recovery. Gold’s retreat, meanwhile, suggests investors are less worried about systemic risks than they were earlier in the year. I’d watch China’s industrial activity and OPEC+ discussions closely, as they’ll likely dictate the next moves for oil and metals.

Then there’s the crypto market, where Bitcoin and Ethereum are stealing the spotlight. Bitcoin, up 0.2 per cent to US$103,780, is flirting with its all-time high, driven by institutional buying despite retail interest lagging. Analysts predict a surge in retail activity if Bitcoin breaks US$109,350, a level that could trigger FOMO-driven buying. Ethereum, at US$2,616, has been the real standout, surging over 50 per cent in May and pushing its market dominance toward 10 per cent.

However, warning signs are flashing: Ethereum’s RSI has been at its most overbought level since May 2021, and a bearish divergence on the four-hour chart hints at a possible 10-15 per cent correction. As someone fascinated by crypto’s evolution, I see this as a classic case of exuberance meeting reality. Ethereum’s rally, fuelled by its growing role in decentralised finance and NFTs, is impressive, but overbought signals suggest a pullback could be imminent.

Still, some analysts view this as a “buy-the-dip” opportunity, with targets of US$3,500-US$3,800 if support holds. I’m intrigued by the institutional-retail dynamic—while retail investors have been net sellers of Bitcoin in 2025, institutions are piling in, signalling confidence in crypto’s long-term potential. Given its fundamentals, I’d be cautious about jumping in at these levels but would consider accumulating on a dip, especially in Ethereum.

Looking beyond the numbers, I’m struck by the broader implications of this moment. The US-China trade deal is a rare bright spot in a year marked by geopolitical tensions and economic uncertainty. It’s a reminder that diplomacy, however imperfect, can move markets. But the deal’s success hinges on follow-through—will Trump and Xi Jinping build on this momentum, or will old rivalries resurface?

Meanwhile, Asian markets show signs of fatigue, with Japanese and Australian stocks dipping as the Wall Street rally loses steam. China’s tech sector, exemplified by Tencent’s robust revenue growth, is a bright spot, but the broader region seems to be pausing for breath.

As a global citizen, I’m hopeful that easing trade tensions will foster stability, but I’m realistic about the challenges ahead. Inflation, while cooling, remains a wildcard, and the Fed’s next moves will be critical. Retail investors, whether in stocks or crypto, navigate a market that rewards boldness but punishes complacency.

In conclusion, the markets in May 2025 feel like a tightrope walk—exhilarating, precarious, and full of potential. The tech rally, trade deal optimism, and crypto surge are reasons to be hopeful, but overbought signals, commodity declines, and European caution remind us that nothing is certain.

From my vantage point, this is a time to stay informed, diversify, and be ready for volatility. Whether it’s buying the dip in Ethereum, eyeing undervalued European industrials, or waiting for clarity on Fed policy, the opportunities are there for those who tread carefully. As always, the market mirrors human hope and fear, and right now, it’s reflecting both in equal measure.

 

Source: https://e27.co/wall-street-soars-crypto-surges-2025-market-trends-explained-20250515/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Psychology of Meme Coins Explained: Humor, FOMO, and More

Psychology of Meme Coins Explained: Humor, FOMO, and More

From funny photos of dogs to celebrities and cartoons, memes have become an integral part of internet culture. And just like anything else which predominantly lives on the internet, cryptocurrencies were also prone to succumb to the trends.

The rise of meme coins has been a surprising twist for many long-term crypto investors, with many expecting the trend to die down along with the memes that the coins were inspired by. However, a decade after the first-ever true meme coin – dogecoin (DOGE) – was created, this category of cryptocurrencies continues to flourish.

This article dives into the psychology behind investing in meme coins and why people love them so much.

The Rise of Meme Coins

The number one reason as to why meme coins have gained popularity is due to their humorous streak related to a certain internet meme. The first-ever meme coin, dogecoin (DOGE), was created in 2013 as a parody of the cryptocurrency phenomenon and ironically took off.

 

Since then, they have been popping up left and right with some of the biggest being DOGE, pepe (PEPE), a coin inspired by the Pepe the Frog meme and shiba inu (SHIB) another meme coin inspired by the popular Shiba Inu dog meme.

Meme coins are designed to go viral and are often heavily promoted on social media platforms, creating hype around a new project. Author of NFT: From Zero to Hero, Anndy Lian, explained that meme coins often gain momentum when members of the community buy into the newest token created “in order to be in on the joke”.

“Once it gets popular and spikes in value, retail investors sometimes jump on board and further boost the coin. Additionally, meme coins are mainly community-driven and can gain popularity overnight due to online community endorsements and FOMO [fear of missing out].”

Psychologists agree, saying that one of the biggest reasons as to why people tend to invest in meme coins seems to be FOMO.

“Memecoins frequently create a sense of urgency and excitement, causing apprehension about missing out on possible profits. People may be compelled to invest because they are afraid of being left out,” Dr Ketan Parmar a psychiatrist and mental health expert told Technopedia.

Licensed counsellor and therapist Marissa Moore added that the popularity of meme coins can also be linked to social proof, or people being influenced by the actions of others, their association with a sense of fun or excitement as well as the sense of community which fosters a supportive environment for many investors.

Meme Coins and Internet Culture

David Kemmerer, the CEO and co-founder of CoinLedger said that one of the key driving points in the success or failure of a meme coin is internet culture. He added that because memes are community-driven and are heavily dependent on market sentiment they continue to drive the hype surrounding meme tokens as well.

Lian added that online platforms in the likes of Discord, Reddit, Twitter, and TikTok serve as catalysts for their viral marketing campaigns and allow meme coins to connect with a diverse range of users. In addition, humor and meme culture, two great catalysts in the success of the said cryptocurrencies, can also have a number of effects on investor behavior.

Dr Parmar noted that humor can foster innovation and novelty in the crypto space, while also reducing risk and seriousness of investing in an asset as volatile and speculative as meme cryptocurrencies.

Moore added that viral marketing and emotional connection associated with meme cryptocurrencies can also influence investor behavior.

Emotional Investing and Meme Coins

Although, with assets that are as dependent on emotions as meme cryptocurrencies, emotional investing could be a key influence in meme cryptocurrency culture.

Emotional investing is the process of making financial decisions based on one’s emotions rather than rational analysis. Dr Parmar explained that emotional investing could include heightened risk-taking, it could affect decision-making as well as amplify or dampen an investor’s confidence and motivation.

Moore noted:

“Emotions can cloud judgment and lead to impulsive decisions, such as buying or selling meme coins without considering the underlying fundamentals or risks. [It] can lead to significant gains but also exposes investors to greater losses when sentiment shifts.”

Bandwagon and Herd Mentality

Investors who tend to invest in more “traditional” cryptocurrencies, like bitcoin (BTC) are doing so to make a profit, however, when a person chooses to invest in a meme token, they could be mostly motivated by jumping on to the “bandwagon” and hype surrounding a certain asset.  This makes meme coin investors higher risk-takers, while traditional crypto investors are a little more risk-averse, Kemmerer explained.

“People may invest in meme coins because they see others doing so, or because they want to fit in or avoid being left behind… Such cognitive biases can affect how people perceive and evaluate meme coins and influence their investment behavior,” Dr Parmar said.

Moore added that when investors see others profiting from meme cryptocurrencies, they may feel compelled to join “the herd, leading to increased demand and potentially inflating prices.”

The Bottom Line

Kemmerer explained that most meme coin investors tend to be very cautious when it comes to investing in the cryptocurrencies. This is due to the tokens being more of an entertainment and depending on the narrative and the community standing behind them.

Lian added:

“Meme coins are heavily community-driven tokens. Since they do not have any fundamental economic or business use case, their prices are usually influenced by social media and online sentiment. This often brings a lot of hype, but also FOMO and financial risk. Memes are a language in themselves, with a capacity to transcend cultures and construct collective identities between people. These sharable visual jokes can also be powerful tools for self-expression, connection, social influence and even political subversion. Due to the hype around meme culture, many investors are turning to digital assets in hopes of striking it rich.”

While the psychology behind why so many people chose to invest in meme cryptocurrencies is fascinating, investors should remember that these assets are highly volatile and never invest money, they can not afford to lose.

 

Source: https://www.techopedia.com/the-psychology-of-meme-coins-why-people-love-tokens-with-a-sense-of-humour

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j