Hong Kong Tightens Crypto Rules, Impacting Markets & Institutional Investors

In a move to bolster financial stability, Hong Kong regulators have imposed restrictions on state-owned enterprises and major tech companies from engaging in stablecoin and cryptocurrency activities by 2025. These limitations are expected to significantly impact liquidity in the Hong Kong crypto market, as evidenced by anticipated declines in trading volumes. This latest crackdown aligns with Beijing’s broader financial control goals and demonstrates growing coordination between Hong Kong and mainland China.