Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

Key Points

1. Bright Smart Securities & Commodities Group fell nearly 20%, while OSL Group declined 10.5% amid regulatory changes.

2. Experts, including Huang from Hong Kong University of Science and Technology, describe the drop as a 'healthy correction' after speculative over-enthusiasm.

3. The Hang Seng Index and Hang Seng Tech Index also saw declines, reflecting a broader downturn in Hong Kong’s financial markets.

4. New regulations require stablecoin issuers to maintain a minimum capital of 25 million Hong Kong dollars ($3.18 million), which may filter out short-term speculation.

5. Analysts like Niko Demchuk of AMLBot and Shukyee Ma of Plume agree the correction is beneficial for long-term market stability and regulatory clarity.