Chelsea USDC deal tests Hong Kong rules

• Chelsea’s new USD Coin (CRYPTO:USDC) shirt sponsorship has raised questions over Hong Kong’s stablecoin rules.
• The city bans active marketing of unauthorised stablecoin activity and sets penalties for violations.
• A legal expert says ordinary fans should have no problem wearing the shirt.

Chelsea’s new USD Coin (CRYPTO:USDC) shirt sponsorship has raised questions over Hong Kong’s stablecoin advertising rules.

Hong Kong’s Stablecoin Ordinance bans active marketing of unauthorised stablecoin activity and allows fines of HK$50,000.

“Unless the wearer is a Circle employee walking down the street in a Chelsea jersey. In that case, you need to establish that Circle instructed him to wear it with the intent of targeting a Hong Kong audience,” said Tanna Chong, head of public policy at VerifyVASP.

The deal between Chelsea FC and Circle was sealed last month and places the USDC brand prominently on the team’s shirts.

Hong Kong has licensed only two stablecoin issuers, while USDC is not issued by an authorised Hong Kong stablecoin issuer.

Some Hong Kong fans and retailers remain unsure whether wearing or selling the shirt could count as promoting an unauthorised stablecoin.

The Hong Kong Monetary Authority said whether an act is an offence depends on the specific circumstances and requires a case-by-case assessment.