{"id":67947,"date":"2023-12-30T05:55:15","date_gmt":"2023-12-30T09:55:15","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=67947"},"modified":"2023-12-30T05:55:15","modified_gmt":"2023-12-30T09:55:15","slug":"hong-kong-enforces-strict-stablecoin-regulation","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hong-kong-enforces-strict-stablecoin-regulation\/","title":{"rendered":"Hong Kong Enforces Strict Stablecoin Regulation"},"content":{"rendered":"\n

According to experts, Hong Kong's stablecoin regulation's stringency surpasses Singapore's and may endanger significant players such as Tether (USDT) and USD Coin<\/a> (USDC).<\/p>\n\n\n\n

\"Hong
Hong Kong Enforces Strict Stablecoin Regulation<\/figcaption><\/figure>\n\n\n\n

According to a report by the South China Morning Post, Chengyi Ong, the Head of APAC Policy at Chainalysis, considers the proposed regulation for stablecoins in Hong Kong to be more stringent than the regulation in Singapore. <\/p>\n\n\n\n

The new framework mandates that to obtain a license, businesses must possess a paid-up capital of at least $3.2 million (HK$25 million), reinforcing her position. <\/p>\n\n\n\n

The regulation also emphasizes Hong Kong's intention to “establish a formidable standard for fiat-referenced stablecoins (FRS),” according to Ong.<\/p>\n\n\n\n

The Hong Kong Monetary Authority\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> (HKMA) and the Financial Services and the Treasury Bureau (FSTB) collaborated to publish a consultation paper delineating the recent proposal. <\/p>\n\n\n\n

The framework aims to prohibit unlicensed entities from engaging in stablecoin transactions with retail investors in Hong Kong through the regulated platform. <\/p>\n\n\n\n

Under the proposed regime, obtaining a license to issue a fiat-referenced stablecoin will take a lot of work, according to Ben Hammond, Office Managing Partner at the Hong Kong office of Ashurst.<\/p>\n\n\n\n

Effect on Tether And USD Coin<\/h2>\n\n\n\n

At this time, according to Hammond, the majority of issuers might still need to satisfy the licensing requirements. This situation raises concerns regarding the ability of prominent stablecoin issuers, such as Tether and Circle, to adhere to the recently implemented regulations. <\/p>\n\n\n\n

Tether, the operator of the largest stablecoin by market capitalization<\/a> globally, has yet to respond to this development.<\/p>\n\n\n\n

In contrast, Circle, the proprietor of USDC, the second-largest stablecoin in the world, supports the regulations proposed by Hong Kong. Yam Ki Chan, vice president of strategy and policy at Circle, stated that the organization will adhere to the stablecoin regulations set forth by the HKMA and the FSTB. <\/p>\n\n\n\n

Furthermore, it will “support the development of a sustainable and responsible virtual asset ecosystem in Hong Kong and the advancement of regulated stablecoins as a credible medium of exchange,” he continued.<\/p>\n","protected":false},"excerpt":{"rendered":"

According to experts, Hong Kong’s stablecoin regulation’s stringency surpasses Singapore’s and may endanger significant players such as Tether (USDT) and USD Coin (USDC). According to a report by the South China Morning Post, Chengyi Ong, the Head of APAC Policy at Chainalysis, considers the proposed regulation for stablecoins in Hong Kong to be more stringent […]<\/p>\n","protected":false},"author":1,"featured_media":11623,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4861,1134,884,1531],"class_list":["post-67947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hkma","tag-hong-kong","tag-regulations","tag-stablecoin"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/10\/Hong-Kong-is-exploring-the-possibility-of-a-Central-Bank-Digital-Currency.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/67947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=67947"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/67947\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/11623"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=67947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=67947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=67947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}