Hong Kong has uncovered a USD 146.5 million money laundering case involving stablecoins and fiat currency exchanging.
The operation has led to the arrest of two individuals, one local and one non-local. The investigation revealed that the pair had transferred large sums of cash out of Hong Kong and conducted rapid and frequent transactions using stablecoins and fiat currency, which originated from a suspicious funding source.
Under OSCO, a person commits an offence if they handle property knowing, or having reasonable grounds to believe, that it represents, in whole or in part and directly or indirectly, the proceeds of an indictable offence.
Hong Kong cases of financial crime
In July 2025, authorities in Hong Kong arrested 12 individuals linked to a cross-border criminal syndicate. The crypto laundering group allegedly moved money using over 550 bank accounts and more than 560 ATM cards registered under their name and the name of unidentified individuals. From the total sum of the laundered money, the police found that USD 1.28 million was connected to known fraud cases, with USD 5.52 million taken from numerous victims.
Navigating an evolving landscape
These cases highlight the importance of vigilance in the financial and cryptocurrency sectors. In 2024, a staggering 44.480 cases of financial crime were recorded, marking a 12% surge from the previous year. Additionally, the number of people charged with money laundering increased by 230% in 2024, underscoring a growing threat that needs a proactive response from regulatory bodies.
As a result, Hong Kong intends to implement the Stablecoin Ordinance in August 2025, introducing a licensing framework for fiat-backed stablecoin issuers. This law will outline specific legal obligations for issuers, distributors, and custodians involved in fiat stablecoins. These obligations will cover licensing requirements, reserve management, redemption processes, compliance with ANL and CFT, and investor disclosure standards. Additionally, the ordinance will enforce advertising restrictions to limit the promotion of unlicensed stablecoins, especially targeting retail investors, during a six-month transition period.
