AsianFin -- Strict customer identification requirements under Hong Kong’s new stablecoin legislation are raising concerns among industry players, who warn the rules could stifle adoption and hurt the city's ambitions in global digital finance.

The long-anticipated stablecoin law, which came into effect on August 1, establishes Hong Kong as one of the first jurisdictions to regulate fiat-backed stablecoin issuers—potentially giving it an early edge in its push to become a leading virtual asset hub.