Hong Kong Tightens Crypto Oversight and Stablecoin Rules

Global regulators, including the Basel Committee, are reviewing banking prudential rules for crypto even as U.S. proposals like the GENIUS Act seek more accommodating frameworks. Hong Kong has moved aggressively to court Web3 and crypto-treasury firms—introducing bank-level stablecoin rules, licensing virtual-asset platforms, and planning to allow qualified institutions to issue stablecoins next year—while its Securities and Futures Commission has intensified scrutiny of listed companies holding digital asset treasuries (DATs). The Hong Kong Stock Exchange has rejected at least five firms seeking to pivot to DAT-focused models, and SFC research warned that some DAT shares trade at large premiums to underlying crypto holdings, pointing to roughly $17 billion in retail losses. The SFC said it will prepare intensified oversight, challenge DAT-focused pivots and launch a public investor-education campaign to highlight volatility and governance risks. Regulators in India, Australia and elsewhere are also tightening oversight of crypto-heavy listings to balance innovation, market transparency and investor protection.