On November 2, regulators in Hong Kong, the United States, and Japan all discussed the same topic: how stablecoins should be regulated and used. It’s easy to lose track when reading each news item separately, so this article brings the three developments together and explains them in a way that’s easy for beginners to understand.
1. Hong Kong: Settlement no longer “closes for the day”
According to an announcement by the Hong Kong Monetary Authority on November 2, the tokenized settlement system EnsembleTX has been upgraded to operate around the clock, allowing banks and their customers to settle real funds at any time. The HKMA also confirmed that dealers have completed a secondary-market pilot for tokenized Exchange Fund Bills, a type of short-term government debt. Regulated stablecoins will be included in a future phase of the pilot, but no specific launch date has been announced.
What does this mean for ordinary people? Traditional bank transfers are limited by business hours, so you often have to wait on weekends and at night. 24/7 settlement brings the “blockchain transfers never sleep” feature into the banking system. Media reports also say that since HSBC’s Hong Kong dollar stablecoin RedCoin launched on PayMe, it has had 50,000 users as of October 23; but that is just the user count, not the number of active users, so don’t read too much into it.
II. United States: Regulatory details finalized, opening the door to small banks
According to media reports, the U.S. Office of the Comptroller of the Currency (OCC) finalized rules last Wednesday to implement the GENIUS Act, covering requirements for reserves, redemptions, custody, and risk management. The rules take effect on January 18. The OCC later encouraged community banks on social media to apply to become licensed payment stablecoin issuers. This is an official statement.
One thing worth noting: reports say the final rules leave room for crypto platforms to offer stablecoin-related rewards, but the OCC says it will assess them on a case-by-case basis; just because something “was already happening” does not automatically make it compliant. For users hoping to “earn interest” with stablecoins, the source of returns and compliance status may change, so don’t treat them as fixed returns.
III. Japan: A debate over transaction limits
According to TokenPost, a second meeting of the Japan Financial Services Agency’s study group discussed a 1 million yen limit per transfer. Yen stablecoin issuer JPYC gave the example of distributing a 50,000 yen subsidy to each of 100,000 people, for a total of 5 billion yen; under the limit, this would have to be split into a large number of transactions. The banking association, meanwhile, is concerned that easing the limit could increase risks. Note: this is still only under discussion, not a final rule.
IV. What these three developments have in common
1. Stablecoins are moving from “tokens on exchanges” toward “payment and settlement tools.” Regulators in different countries are taking a “set the rules first, then open up” approach.
2. Rules vary widely: Hong Kong is focused on experiments within the banking system, the U.S. on issuer licenses, and Japan is debating transaction limits.
3. The market is already substantial: according to current DefiLlama data, USDT in circulation is about $181.2 billion and USDC about $71.3 billion.
Three tips for beginners
• “Pilot,” “discussion,” and “plan” in the news don’t mean something has already launched. Check what stage it’s at before assessing its impact.
• Stablecoins are not risk-free. The issuer’s credibility, reserve transparency, and compliance matter more than the words “pegged to $1.”
• Use only legitimate channels and check official announcements. Don’t believe any claims of “high interest and guaranteed principal” on stablecoins.
What do you mainly use stablecoins for—transfers, investing, or trading? Feel free to share in the comments.
This article is for informational purposes only and does not constitute investment advice.