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Hong Kong Grants Bullish Crypto License, Advancing City’s Regulated Digital Asset Sector

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  • Bullish secured an SFC license on February 18, becoming Hong Kong’s 10th licensed exchange.
  • CEO Tom Farley emphasized Bullish’s commitment to regulatory compliance and global expansion efforts.
  • Hong Kong’s SFC is accelerating approvals, with eight more platforms awaiting regulatory clearance.

Bullish Group, a Gibraltar-based cryptocurrency exchange and a subsidiary of blockchain firm Block.one, has secured regulatory approval from Hong Kong’s Securities and Futures Commission (SFC). The exchange received its license on February 18, bringing the city’s total to 10 licensed trading platforms. 

We are excited to announce that Bullish has received licensing approval from the Securities and Futures Commission to offer services to eligible customers in Hong Kong,” the company shared on social media.

The SFC granted Bullish HK Markets Limited licenses for Type 1 (dealing in securities) and Type 7 (providing automated trading services). The exchange is now authorized to operate as a Virtual Asset Trading Platform, allowing it to cater to eligible customers within Hong Kong’s regulated framework.

Bullish Strengthens Global Expansion Efforts

Bullish has secured a key regulatory milestone, reinforcing its global expansion efforts. CEO Tom Farley said this achievement reflects the company’s commitment to building a trusted digital asset exchange. The company recently obtained BaFin licenses in Germany, further strengthening its regulatory standing.

Tom also emphasized the importance of clear regulations in building trust within the digital asset industry. Bullish remains committed to compliance and transparency, aiming to provide a secure trading environment for both customers and partners.

Further strengthening its industry presence, Bullish is bringing its influence to Consensus Hong Kong, a major event focused on digital assets, blockchain, and Web3. The conference, scheduled for February 18-20 at the Hong Kong Convention & Exhibition Centre, marks the first Consensus event outside the U.S. in six years.

Hong Kong Expands Crypto Licensing

The SFC has accelerated its efforts to regulate virtual asset trading platforms (VATPs) over the past year. Until recently, only OSL and HashKey had full licenses, granted in 2020 and 2023, respectively. However, the approval process gained momentum in late 2024, with the SFC greenlighting four more platforms—Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology (BVI) in December.

In October 2024, SFC CEO Julia Leung predicted more approvals, a forecast that has proven accurate. The regulatory push aims to expand licensed exchanges while maintaining oversight, shaping the next phase of growth for Hong Kong’s crypto sector.

With eight more crypto trading platforms—including Crypto.com, Matrixport, and WhaleFin—awaiting SFC approval, Hong Kong’s digital asset market is on track for further expansion. More platforms are expected to secure licenses in the coming months, solidifying the city’s position as a leading player in the regulated digital finance space.

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Standard Chartered, Animoca, and HKT to Launch Explosive HKD Stablecoin

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  • Standard Chartered, Animoca, and HKT to launch HKD-backed stablecoin.
  • Partnership aims to enhance cross-border payments and Web3 use cases.
  • JV to leverage bank-grade infrastructure and blockchain expertise.

Standard Chartered, Animoca Brands, and HKT have teamed up in a historic joint venture to revolutionize Hong Kong’s financial landscape. This collaboration is set to bridge traditional finance with Web3 for improved payments.

HKD-backed Stablecoin

Standard Chartered, Animoca Brands, and HKT have formed a joint venture to apply for a license from the Hong Kong Monetary Authority (HKMA). Their goal is to issue a Hong Kong dollar-backed stablecoin, which will enhance both domestic and cross-border payments. The companies aim to leverage their respective strengths in the financial, telecommunications and Web3 sectors to drive innovation in the digital asset ecosystem.

Standard Chartered’s Hong Kong division (SCBHK) will bring its extensive experience with stablecoins and banking infrastructure. The bank will contribute its established governance and banking-grade infrastructure to the joint venture. Animoca Brands, a leader in Web3 technologies, will utilize its expertise in blockchain and Web3 applications to create new use cases for the digital currency.

HKT, a telecommunications and media service provider, will integrate the stablecoin into its mobile wallet services. This collaboration aims to improve payment efficiency and transaction security within Hong Kong’s rapidly growing digital economy. The joint venture partners plan to enhance the payment landscape by adopting stablecoins in both retail and enterprise markets.

The HKMA’s stablecoin issuer sandbox, launched in July 2024, has been a testing ground for these companies. The partners have been exploring the role of stablecoins in bridging Web3 and traditional finance. They expect to contribute to the development of the digital asset ecosystem in Hong Kong through their joint efforts.

Strategic Importance of the Joint Venture

Standard Chartered’s global network and experience in digital assets position it well to support the venture. The bank has previously worked with stablecoin issuers worldwide, allowing the venture to benefit from its infrastructure and regulatory compliance.

The joint venture will explore innovative use cases for the stablecoin, from institutional to individual applications. It will focus on enhancing payment systems, improving transaction transparency, and improving cross-border financial interactions. The partners believe this initiative will strengthen Hong Kong’s position as a global hub for digital assets.

Hong Kong’s Digital Future

Mary Huen, CEO of Standard Chartered Hong Kong, emphasized the bank’s commitment to promote financial innovation. She stated that the project will provide a secure medium of exchange for several uses.

Animoca Brands expressed enthusiasm for the project, citing the potential of such coins in the Web3 ecosystem. The company aims to help drive the adoption of stablecoins across various sectors. The joint venture aligns with Animoca’s mission to promote the safe and compliant growth of Web3 in Hong Kong.

HKT also expressed confidence in the project’s potential to improve payment systems. The company believes the stablecoin will benefit both merchants and consumers through improved transaction speed and security. 

Hong Kong Accepts Bitcoin and Ethereum for Investment Visa Program

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  • Hong Kong now accepts Bitcoin and Ethereum for visa wealth proof.
  • Crypto holders must provide signed valuations for investment visa.
  • Investment visa excludes cryptocurrency for post-approval investments.

Hong Kong now recognizes Bitcoin and Ethereum as valid assets for its investment visa program, offering new opportunities for crypto holders. Although crypto can prove wealth, it must be verified by chartered accountants.

Bitcoin and Ethereum Now Accepted for Hong Kong Visa

Hong Kong has updated its investment visa program to allow Bitcoin and Ethereum as proof of wealth. The program, which requires a net worth of HK$30 million equivalent to $3.8 million, includes digital assets for the wealth verification. However, cryptocurrency cannot be used for the mandatory investment requirement once the visa is approved.

The New Capital Investment Entrant Scheme allows individuals to prove their wealth with various assets. Cryptocurrency holders can use Bitcoin and Ethereum, provided they meet verification standards. A qualified chartered public accountant must confirm the value of the digital assets with a signed report.

Although digital assets can demonstrate wealth, they have limitations within the visa process. After approval, applicants must invest the HK$30 million in permitted assets that exclude cryptocurrency. The program maintains traditional investment requirements even though it accepts digital assets for wealth verification.

Chartered Accountants Conduct Crypto Asset Verification

The verification process has prompted local accountants to reassess their services to meet the new requirements. Chartered public accountants in Hong Kong seek to develop specialized methods to assess cryptocurrency assets. They are now using unique valuation techniques to ensure proper documentation of Bitcoin and Ethereum holdings for visa applicants.

The verification process involves providing transaction histories, wallet addresses, and other necessary documentation. Chartered accountants must thoroughly review and validate the digital assets’ value and authenticity. This careful assessment ensures compliance with the program’s standards and provides applicants with the required certification.

Impact of Hong Kong’s Investment Visa Program

The decision to accept digital assets highlights Hong Kong’s modern approach to cryptocurrency regulation. The territory has positioned itself as a hub for digital assets, with licensed platforms operating under local policies. This development reflects Hong Kong’s strategy to integrate cryptocurrency into its financial sector.

As of February 2025, the investment visa program continues to process applications. More than 750 individuals have already applied for the investment visa program which demonstrates strong interest. This program offers a new path for wealthy individuals to gain residency in Hong Kong. Moreover, Hong Kong distinguishes itself from other jurisdictions that do not recognize digital assets for immigration.

Invest Hong Kong, the agency in charge of the program, clarified that there are no restrictions on the types of assets applicants can use for wealth verification. The program aims to balance innovation with regulatory standards and provide clear guidance for potential applicants.

Hong Kong Approves Investment Immigration Applications Using Cryptocurrency

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  • Hong Kong approves Bitcoin and Ethereum for investment immigration applications.
  • Two successful immigration cases used crypto assets worth HK$30 million as proof.
  • Hong Kong’s program now allows digital assets like Bitcoin and Ethereum for visas.

On February 7, 2025, Hong Kong authorized the first investment immigration applications that utilized cryptocurrency assets for verification. Two applicants achieved acceptance of the New Capital Investment Entrant Scheme through cryptocurrency investments worth HK$30 million, comprising Ethereum and Bitcoin. 

The country’s immigration policy has changed by implementing cryptocurrency asset approvals to show increasing interest in digital economic activities. Following their review process, the Hong Kong Investment Promotion Agency (IPA) verified and approved an Ethereum-based application submitted by a Chinese mainland applicant. 

Authorities previously approved the use of Bitcoin assets in October 2024. Hong Kong authorities have initiated the first cryptocurrency-related financial processes, demonstrating an ongoing official acceptance of digital assets.

Investment Immigration Program and Crypto Asset Requirements

The Investment Immigration Program of Hong Kong requires applicants to prove ownership of HK$30 million (US$3.85 million) before they receive visa consideration. These assets must be stored in stock or regulated assets for approval. After getting approval, applicants must invest the same amount for six months. A sustainable investment allows immigrants to renew their visas in a 2-2-3 cycle before they achieve permanent residency status.

Investors remain uncertain whether cryptocurrency purchases or ETFs would satisfy visa investment criteria. The government is currently evaluating its position regarding these investment types. The authorities conducting the program may provide additional clarification about which crypto assets beyond Ethereum and Bitcoin can qualify as valid investment opportunities.

According to current requirements, applicants must maintain their cryptocurrency assets either in cold wallets or on major exchanges such as Binance to qualify as part of their investment-based immigration. The approved cases have proven crypto assets suitable as proof, but additional policy adjustments may follow.

Expansion of Cryptocurrency Acceptance in Asia

The Hong Kong government joins several Asian nations that now consider cryptocurrency legitimate proof for showing financial assets. Singapore has permitted cryptocurrency to serve similar functions during immigration procedures for an extended period. Singapore implements tighter regulations about crypto asset acquisitions by setting proof requirements for asset origin.

These crypto-backed applications demonstrate Hong Kong’s favorable stance on digital assets, evident in the growing adoption of global cryptocurrency. According to Bitcoin supply data, the APAC region experienced a 6.4% yearly increase in retail transactions. Hong Kong’s crypto market demonstrates growth while other U.S. and European areas experience declining interest. The growth happened because markets like Singapore and South Korea made their regulations more straightforward, leading to more people joining their cryptocurrency markets.

Hong Kong Accelerates Push for Stronger Crypto Leadership Amid Global Digital Economy Shift

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  • Johnny Ng calls for accelerating Bitcoin reserves and stablecoin regulation in Hong Kong.
  • Hong Kong aims to stay competitive by fast-tracking crypto laws and fostering innovation.
  • Legislator Ng highlights GBA as a testbed for stablecoin applications in global trade.

Johnny Ng, a legislator in Hong Kong, urged his region to expedite its work on building an enhanced cryptocurrency framework. In a recent statement, Ng stressed Hong Kong’s need to outpace international opposition in the digital economy, which is constantly changing rapidly. He emphasized the requirement for stronger measures to establish Hong Kong as an international center for crypto and digital asset holdings.

During a press conference with U.S. crypto czar David Sacks, Ng expressed his opinion that regional cryptocurrency development proceeds at an inadequate pace relative to worldwide digital finance developments and expanding U.S. political influence under Trump.

Strategic Bitcoin Reserve and Stablecoin Regulations

Ng recommends investigating Bitcoin as an addition to Hong Kong’s vital reserves for strategic purposes. The suggestion for Bitcoin reserve integration resembles ongoing reserve strategy evaluations in the United States. According to Ng, there has been a call for more extensive studies of Bitcoin since it might have a role in Hong Kong’s financial security.

Ng makes a case for the Hong Kong authorities to establish regulatory standards for stablecoins quickly. The Hong Kong government is currently developing legislation for stablecoins, and Ng believes the process should be accelerated. He recommended that regulatory sandbox-authorized stablecoin enterprises receive permission to launch their products immediately. According to Ng the strategic economic position of the Greater Bay Area (GBA) within China’s Belt and Road Initiative (BRI) makes it an optimal setting for testing stablecoin applications.

Fostering Collaboration and Expanding Crypto Regulatory Frameworks

The expansion of Hong Kong’s regulatory frameworks represents Ng’s vision for enhanced virtual asset platform support. He supports extending transaction changes for authorized platforms to help accelerate sector growth. Ng suggested establishing a specialized digital asset office to handle regional and organizational progress on virtual assets alongside AI innovation.

During his address, Ng highlighted various digital asset initiatives launched by Hong Kong, including establishing the Third Generation Internet Development Task Force. He emphasized the need for Hong Kong to maintain high-speed development while establishing strategic initiatives for crypto market success on the world stage. Ng aims to participate in the Bitcoin U.S. Summit in May to strengthen connections between Hong Kong’s crypto sector and its U.S. counterpart.

Hong Kong Leads Global Crypto Tax Transparency with New Framework: Report

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  • Hong Kong to require annual crypto asset reporting for tax purposes, aiming to combat cross-border tax evasion.
  • New framework to be based on 2018 financial information exchange, focusing on digital assets for tax compliance.
  • Hong Kong plans full crypto reporting by 2026, fostering global tax cooperation and strengthening financial governance.

Hong Kong plans to implement a new regime that would make it mandatory for individuals and business to report their crypto assets for taxation purposes. The announcement was made on December 13, during the meeting of the Organization for Economic Co-operation and Development (OECD) Global Forum on Transparency and Effective Exchange of Information in Tax Matters. The framework is expected to help in the recovery of taxes on virtual currencies, thus fighting cross border tax evasion.

Tax paying residents of Hong Kong will be obliged to submit their cryptocurrency ownership and trading information once per year under the new regulation. This will be a continuation of the measure that the region has been taking to enhance on the tax compliance. The framework will be based on the Automatic Exchange of Financial Account Information in Tax Matters that has been implemented in Hong Kong since 2018 and will fully concern digital assets.

Crypto Reporting Framework Timeline

The government is looking to have the new crypto reporting framework completed by 2026, and then put into action by 2028. Once implemented, data retrieved from these reports will be disclosed to the international tax authorities and therefore foster international tax cooperation. This data exchange is intended for identifying possible cases of tax avoidance as well as to meet international standards of taxation.

According to Christopher Hui, the Secretary for Financial Services and the Treasury, this framework fits well into Hong Kong’s continuous measures to enhance international tax cooperation and compliance. He said that the additional reporting standards will further strengthen Hong Kong’s position as an international financial hub and a supporter of responsible tax jurisdictions.

Global Taxation of Digital Assets

Since 2018, Hong Kong has shared financial account information with partner jurisdictions every year, thus supporting the fight against tax evasion. Expanding the foundation with Crypto Asset Reporting, digital asset transactions are required to be altered to meet the same standards as fiat transactions.

The Hong Kong government added that consultations with stakeholders such as the industry players and the public will be made to arrive at the necessary legislative changes. The following will benefit from this consultation process to ensure that the regulations are correct and all stakeholders are considered.

With the taxation of virtual currencies being a relatively new area, countries around the world are rushing to adapt their laws to this new form of income, and Hong Kong’s desire to establish a transparent and clear approach to reporting standards shows that other jurisdictions should follow. Such an approach proves the city’s desire to stay the numero uno in terms of international financial governance and digital assets regulation.

Mox Launches Revolutionary Crypto ETF Trading with Ultra-Low Fees in Hong Kong

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Mox, а virtuаl bаnk undеr Stаndаrd Chаrtеrеd, hаs аchiеvеd а milеstonе by bеcoming thе first bаnk in Hong Kong to offеr dirеct trаding of spot Bitcoin аnd Ethеrеum ETFs on its plаtform. Announcеd on August 7th, 2024, this lаunch mаrks а strаtеgic movе to cаtеr to thе rising customеr intеrеst in cryptocurrеncy mаrkеt еxposurе.

This dеcision followеd а rеcеnt survеy rеvеаling significаnt intеrеst in cryptocurrеnciеs аmong Hong Kong rеsidеnts. Approximаtеly onе-third of thosе survеyеd аrе involvеd with crypto, аnd а third of crypto ownеrs аrе opеn to switching thеir primаry bаnk to onе thаt providеs crypto-rеlаtеd products. This prеsеnts а vаluаblе opportunity for finаnciаl institutions willing to аdаpt to еvolving mаrkеt dеmаnds.

By intеgrаting crypto ETFs into its sеrvicеs, Mox positions itsеlf аs а progrеssivе digitаl bаnk. This initiаtivе аligns with its dеdicаtion to promoting innovаtion аnd simplifying customеr аccеss to еmеrging аssеt clаssеs. Offеring crypto-rеlаtеd invеstmеnts dirеctly through thе Mox аpp еnhаncеs sеcurity аnd trust, which is еssеntiаl for building confidеncе in this rеlаtivеly nеw invеstmеnt аrеа.

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Mox Launches Revolutionary Crypto ETF Trading with Ultra-Low Fees in Hong Kong 2

Furthеrmorе, Bank plаns to broаdеn its crypto offеrings, potеntiаlly including dirеct purchаsеs аnd trаding of crypto аssеts through а licеnsеd еxchаngе pаrtnеrship. This comprеhеnsivе аpproаch undеrscorеs Mox’s commitmеnt to bеcoming а lеаding plаtform for аll things cryptocurrеncy-rеlаtеd.

Mox’s ETF Fee Structure

Mox is introducing cost-еffеctivе cryptocurrеncy ETF trаding options. It chаrgеs 0.12% of thе trаnsаction volumе аnd а minimum fее of 30 Hong Kong dollаrs ($3.85) for ETFs listеd in Hong Kong, both for spot аnd dеrivаtivеs. For US-listеd dеrivаtivеs ETFs, thе fее is 0.01% pеr shаrе with а minimum chаrgе of $5.

Bаrbаros Uygun, Mox’s CEO, highlightеd thе bаnk’s dеdicаtion to stаying аhеаd of industry trеnds. Hе stated thаt thе inclusion of Crypto ETFs on thе Mox Invеst plаtform еnаblеs customеrs to еxplorе nеw invеstmеnt opportunitiеs in а rеgulаtеd аnd trustеd еnvironmеnt. This movе rеflеcts its аmbition to sеt globаl stаndаrds through innovаtion аnd rеsponsivеnеss to mаrkеt dеvеlopmеnts.

Jаyаn Bhаtiyа, thе bаnk’s chiеf product officеr, confirmеd thаt thе crypto ETF lаunch mаrks only thе bеginning, аlthough hе did not disclosе spеcific plаns for introducing dirеct crypto trаding sеrvicеs.

Related Readings | Could Cardano’s Past Spark a 1000% Rally?

Hong Kong Police Bust Crypto Fraud Ring, Arrest 14-Year-Old in HK$11M Scam

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In a significant crackdown on crypto fraud, Hong Kong police have apprehended four individuals, including a 14-year-old boy, for allegedly using counterfeit banknotes to defraud victims. This arrest brings the total number of people detained in similar cases since October of the previous year to 14, with the total losses amounting to HK$11 million (US$1.4 million).

Chief Inspector Lo Yuen-shan of the Commercial Crime Bureau announced on Sunday that the recent arrests involved suspects aged between 14 and 39. They were apprehended on conspiracy charges to defraud, possession, and use of 5,000 counterfeit banknotes. Lo emphasized the organized nature of the syndicate, detailing how roles were distinctly divided among the members.

The syndicate operated by sourcing fake banknotes and setting up bogus cryptocurrency exchange shops to lure victims. The two masterminds behind the scheme sourced the counterfeit notes and identified potential victims online, posing as reputable cryptocurrency investors. They offered enticing deals above the cryptocurrency market rate, drawing unsuspecting individuals to their fake exchange setups.

Crypto Exchange Scam Unveiled

Once victims were enticed to the bogus exchange premises, they were shown stacks of counterfeit HK$1,000 banknotes, only the top and bottom of which were authentic. This display was intended to convince the victims of the transaction’s legitimacy.

After gaining their trust, the fraudsters persuaded the victims to finalize online transactions. Upon cryptocurrency transfer, the suspects swiftly moved the assets out of the victims’ accounts, reneging on the payment.

Senior Inspector Mak Wai-kwong highlighted the risk posed to young residents during the summer holidays, warning them against the temptation of quick money through illegal means. He stressed the importance of vigilance and urged residents to verify the authenticity of banknotes by checking for shimmering patterns, a common feature of genuine notes.

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Senior Inspector and Chief Inspector revealed the latest arrests on Sunday.

The authorities’ swift action underscores the serious penalties associated with the production, circulation, or use of counterfeit currency, which carries a maximum sentence of 14 years in prison in Hong Kong.

Inspector Mak also reiterated the public awareness and alertness in financial dealings that are especially pathname in the fast-rising area of cryptocurrency. The police will continue investigation with efforts to break up such syndicates, with a view to protecting members of the public from scams of this nature.

Related Reading | Analyst Forecasts Bitcoin Boom: Key Drivers Revealed

Hong Kong Issues New Rules For Stablecoin Issuers

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Hong Kong Monetary Authority [HKMA] is inching closer to implementing a regulatory regime for the nation’s fiat-based stablecoin [FRS] issuers. As per the press release, the market watchdog has published a consultation report on these asset classes, mandating issuers to establish physical companies in the country. The report also includes requirements for custody and prohibits issuers from providing interest to users.

Per the blog post, the public consultation concluded this February and secured 108 submissions from market participants, industry associations, business and professional organizations, and other stakeholders. Major market players like crypto exchange Binance and stablecoin giant Circle participated in the two-month-long consultation.

Hong Kong’s regulatory body will soon announce the list of sandbox participants.

A vast majority of respondents agreed that with the increased prevalence and evolving development of virtual assets (VAs), a regulatory regime should be introduced for FRS issuers, to facilitate proper management of the potential monetary and financial stability risks, as well as provide transparent and suitable guardrails. The proposed regulatory requirements and implementation arrangements received general support from respondents, with some further enhancements suggested in the submissions.

HKMA and The Financial Se­rvices and the Treasury Bure­au [FSTB] jointly conducted a thorough consultation on stablecoin issue­rs, in Decembe­r last year. The move paved the way for creating a re­gulatory framework specifically for these­ digital assets.

As earlier reported by TronWeekly, the Dece­mber consultation proposed a licensing re­gime for all fiat-backed stablecoin issue­rs. Under the new regime, entities issuing stable­coins pegged to traditional currencie­s, like the US dollar [USD], would be required to seek authorization from the Hong Kong Monetary Authority, the city’s de­ facto apex bank.

Hong Kong: Regulations Will Boost Investor Confidence-Expert

Furthermore, the FSTB emphasized that only lice­nsed entities would be able to sell stablecoins to retail investors. This e­ncompasses authorized institutions such as banks, license­d corporations, and cryptocurrency trading platforms. The proposed re­gulations establish guidelines for re­serve manageme­nt, stability mechanisms, redemption proce­sses, and corporate governance­ to create a secure­ and reliable environme­nt for both issuers and users.

Market watchdogs believe that the introduction of regulatory frameworks for licensed platforms can be a game-changer, bolstering investor trust. Hu Zhenbang, financial director of OSL Group, noted that this regulatory clarity might play a key role in luring companies back from rival markets like Singapore.

Hong Kong Set to Reveal Stablecoin Consultation Outcome, Setting Regulatory Path

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Hong Kong, a global financial hub, is nearing the­ announcement of its stance on stable­coins, a move that could greatly influence­ the growing cryptocurrency industry. The Financial Se­rvices and the Treasury Bure­au (FSTB) announced today that it will soon publish the findings from a thorough consultation on stablecoin issue­rs, which was conducted in Decembe­r 2023. This will pave the way for creating a re­gulatory framework specifically for these­ digital assets.

The Dece­mber consultation proposed a licensing re­gime for all fiat-backed stablecoin issue­rs. This means that entities issuing stable­coins pegged to traditional currencie­s, like the US dollar (USD), would nee­d authorization from the Hong Kong Monetary Authority (HKMA), the city’s de­ facto central bank.

The FSTB clarified that only lice­nsed entities can se­ll stablecoins to retail investors. This e­ncompasses authorized institutions such as banks, license­d corporations, and cryptocurrency trading platforms. The proposed re­gulations establish guidelines for re­serve manageme­nt, stability mechanisms, redemption proce­sses, and corporate governance­ to create a secure­ and reliable environme­nt for both issuers and users.

Sandbox Promotes Stablecoin Growth

The upcoming re­gulatory framework follows the successful launch of the­ HKMA’s stablecoin sandbox program in March 2024. This initiative allows qualified firms to te­st and refine their stable­coin offerings in a controlled environme­nt.

HKMA’s chief e­xecutive Eddie Yue­ emphasized the sandbox’s role­ in “facilitating the formulation of fit-for-purpose and risk-based re­gulatory requirements.” The­se regulations are e­ssential for encouraging the he­althy and responsible growth of stablecoin issuance­ in Hong Kong.

Market participants are optimistic about its prospe­cts in Hong Kong. In March, Vincent Chok, CEO of First Digital and the issuer of the­ FDUSD stablecoin, expresse­d confidence, stating that the company had witne­ssed “good” market demand. He­ also noted that many players are e­ager to apply for the anticipated Hong Kong stable­coin licenses.

The re­lease of the consultation re­sults marks a crucial step for Hong Kong’s crypto ambitions. By establishing a clear re­gulatory framework, the city is set to be­come a major hub for stablecoin innovation and adoption. This move will attract busine­sses and investors see­king a secure and well-de­fined environment for the­se digital assets.

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