1 year ago
Hong Kong volition not let retail investors to commercialized stablecoins until they are officially regulated, which is projected to hap by the extremity of 2024.
As Hong Kong progresses with the adoption of cryptocurrency trading for idiosyncratic investors, a section authoritative stressed that retail stablecoin trading is not yet allowed.
Hong Kong has not adopted regulations for stablecoins similar Tether (USDT) oregon USD Coin (USDC), which means retail investors are not allowed to commercialized those assets, according to Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui.
The authoritative provided remarks connected cryptocurrency regularisation successful Hong Kong during an online concern committee gathering connected Oct. 6, the section quality bureau Ming Pao reported.
Cryptocurrency work providers person been broadly utilizing stablecoins similar USDT arsenic a large trading plus due to the fact that their worth is designed to beryllium stabilized by the peg to United States dollars oregon assets similar gold, Hui said. However, immoderate stablecoins person faced superior volatility issues oregon adjacent collapsed successful the past, the caput noted, adding that reserve absorption of stablecoins highly affects the terms stableness of investors’ rights to redeem fiat currencies.
Considering these risks, retail trading of stablecoins volition not beryllium allowed until Hong Kong officially regulates stablecoins, Hui reportedly declared.
Hui besides mentioned that the shuttered section crypto speech JPEX — which was allegedly promoting its services successful the region without a licence — was progressive successful a superior fraud case, reflecting the request for higher supervision of the cryptocurrency market.
Cointelegraph has reached retired to Hong Kong’s Securities and Futures Commission to inquire astir stablecoin trading rules successful the country. This nonfiction volition beryllium updated pending caller accusation from the regulator.
Related: Hong Kong constabulary retrieve $11M worthy of assets successful JPEX case: Report
JPEX halted definite services connected its platform arsenic of mid-September 2023, citing a liquidity situation triggered by “unfair treatment” from definite institutions successful Hong Kong. JPEX rapidly became the halfway of a large ungraded successful the industry, with Hong Kong authorities launching an probe aft receiving much than 2,000 complaints from JPEX users reporting astir $180 cardinal successful losses.
The JPEX lawsuit came a fewer weeks aft Hong Kong regulators officially allowed retail investors to commercialized cryptocurrencies similar Bitcoin (BTC) successful aboriginal August 2023. The Hong Kong Monetary Authority is expected to present regulatory guidelines for the stablecoin market by the extremity of 2024.
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