Hong Kong Financial Services and the Treasury Secretary Sam Hui recently said that Hong Kong has not yet adopted regulation for stablecoins such as Tether (USDT) or USDC, which means that retail investors are not allowed to trade these assets. 🚫
Sam Hui pointed out that although cryptocurrency service providers have been widely using stablecoins such as USDT as the main trading assets, some stablecoins have faced serious volatility problems and even collapsed in the past. The reserve management of stablecoins has greatly affected the price stability of investors' rights to redeem fiat currencies. 💹
Therefore, retail trading of stablecoins will not be allowed until Hong Kong formally regulates stablecoins. In addition, Sam Hui also mentioned that the closed local cryptocurrency exchange JPEX was involved in a serious fraud case, reflecting the need for higher regulation of the cryptocurrency market. 🔍
The Hong Kong Monetary Authority is expected to introduce regulatory guidelines for the stablecoin market by the end of 2024. 📑
Sam Hui pointed out that although cryptocurrency service providers have been widely using stablecoins such as USDT as the main trading assets, some stablecoins have faced serious volatility problems and even collapsed in the past. The reserve management of stablecoins has greatly affected the price stability of investors' rights to redeem fiat currencies. 💹
Therefore, retail trading of stablecoins will not be allowed until Hong Kong formally regulates stablecoins. In addition, Sam Hui also mentioned that the closed local cryptocurrency exchange JPEX was involved in a serious fraud case, reflecting the need for higher regulation of the cryptocurrency market. 🔍
The Hong Kong Monetary Authority is expected to introduce regulatory guidelines for the stablecoin market by the end of 2024. 📑