Hong Kong aims to finalize the process stablecoin regulations by mid-2024, highlighting the territory’s contrasting approach to mainland China.
Legislative Council member Duncan Chiu pointed out that Hong Kong is as well on The path to be finalized stablecoin Regulations by mid-2024. The announcement He was made At Shanghai International Blockchain Week, according to a local resident news outlet.
Hong Kong would probably like to create region As a web3 association, it is driven by regulations and different from those in China more Restrictive position on Cryptocurrency.
Regulatory roadmap for Hong Kong stablecoin Systems
Chiu revealed that the legislative body in this time in that it second Consultation phase To formulate guidelines for stablecoin Exporters. This is of great importance step in The region’s effort to promote a crypto-friendly environment environmentas follows the introduction of license system for Cryptocurrency exchanges back in June. The licenses allowed exchanges to offer retail services trading Services in a range of digital assets.
While China intensifies its repressive campaign on Given its cryptocurrency activities, Hong Kong distinguishes itself by actively advocating for cryptocurrency companies. Territory proactive in regulatory Clarity can serve as an essential motivator for Attract international Cryptocurrency companies and establishing their web3 position.
Concerns and Crackdown
Cryptocurrency regulations have become a major concern for Hong Kong, especially after the JPEX scandal this week.
Officials in Hong Kong have cracked down on Alleged crypto scam, arrest six peopleincluding two famous ones social media Influencers associated with the JPEX platform. The exchange allegedly engaged in fraudulent activities, with Investigations leading to arrest of Eight people lead to more. The case involves towing issues amounting to approximately $152 million, serving as a warning tale for Risks involved in The crypto landscape is rapidly evolving.
It is worth noting that some sector specialists called for more Aggressive action from Hong Kong government. Experts have put pressure for the creation of a government-Supported stablecoinprovisionally named HKDG, to compete directly with Stablecoins such as USDT and USDC. These advocates believe that the current plan, which… allows for Stablecoins to be issued private institutions, lacks ambition, and leaves the region vulnerable to external interference financial Effects.