Hong Kong Aiming for Stablecoin Rules by Mid-2024

Supply: Adobe / Dmitry Rukhlenko

Hong Kong lawmaker Duncan Chiu has introduced the launch of the second spherical of consultations aimed toward formulating stablecoin issuance tips.

Talking on Tuesday, Chiu mentioned he hopes for town to launch regulatory tips for stablecoin issuers by mid-2024, as reported by native media.

Stablecoins are cryptocurrencies value-pegged to comparatively worth steady asset, like fiat currencies (ex. US {dollars}). They function a digital technique of transacting with conventional cash, however with the advantages of blockchain – velocity, programmability, borderlessness, and the like.

In August, a consortium of business specialists urged the Hong Kong authorities to introduce its stablecoin, the HKDG, as a contender in opposition to established stablecoins like USDT and USDC. They argued that the federal government’s current plan, which permits personal establishments to situation stablecoins, gained’t be capable of compete.

Earlier this month, one other Hong Kong lawmaker – Jonny Ng – prolonged an invite to Vitalik Buterin to come back to be taught concerning the nation’s regulatory efforts to undertake crypto, after the developer questioned its long-term dedication to the business.

Whereas neighboring China has applied a broad crackdown on cryptocurrencies, Hong Kong has embraced a extra crypto-friendly method. In June, town initiated its crypto licensing regime, granting licensed exchanges the power to supply retail buying and selling companies.

This technique has positioned Hong Kong as a gorgeous vacation spot for cryptocurrency corporations searching for a conducive regulatory setting. Some analysts – together with CryptoQuant Head of Advertising and marketing Hochan Chung – have recommended that the resurgence of buying and selling liquidity within the area may bolster Bitcoin’s value within the coming months.

Stablecoin rules are making gradual however regular progress in the US, with the Readability for Fee Stablecoins Act receiving approval from the Home Monetary Providers Committee (HFSC) in July. Nonetheless, many stay uncertain that it may cross the Democrat-controlled Senate, which nonetheless seems largely against the invoice.

Hong Kong Crypto Investigations

Nonetheless, as Hong Kong refines its stablecoin rules, authorities have launched investigations into alleged misconduct throughout the cryptocurrency retail buying and selling sector.

The police revealed that eight people have been arrested on suspicion of conspiracy to defraud in reference to the JPEX cryptocurrency alternate. Additional arrests could also be made as investigations progress.

The police have acquired 1,641 complaints associated to the JPEX case, with claimants asserting that they have been unable to withdraw their holdings from the alternate. These complaints point out a possible sum of roughly HK$1.19 billion ($152 million) in belongings in danger, as reported by the police.
 

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