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Lawmaker: Hong Kong Aiming for Stablecoin Regulations by Mid-2024

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Offer: Adobe / Dmitry RukhlenkoHong Kong lawmaker Duncan Chiu has introduced the beginning of the second round of consultations aimed at formulating stablecoin issuance guidelines.

Talking on Tuesday, Chiu acknowledged he hopes for the metropolis to birth regulatory guidelines for stablecoin issuers by mid-2024, as reported by local media.

Stablecoins are cryptocurrencies price-pegged to quite price accurate asset, devour fiat currencies (ex. US bucks). They attend as a digital system of transacting with veteran cash, but with the advantages of blockchain – tempo, programmability, borderlessness, and the devour.

In August, a consortium of industry consultants suggested the Hong Kong authorities to introduce its stablecoin, the HKDG, as a contender in opposition to established stablecoins devour USDT and USDC. They argued that the authorities’s current realizing, which permits non-public institutions to teach stablecoins, won’t be in a position to compete.

Earlier this month, one other Hong Kong lawmaker – Jonny Ng – extended an invite to Vitalik Buterin to reach wait on to search out out regarding the nation’s regulatory efforts to undertake crypto, after the developer wondered its long-term dedication to the industry.

While neighboring China has implemented a tall crackdown on cryptocurrencies, Hong Kong has embraced a extra crypto-obliging system. In June, the metropolis initiated its crypto licensing regime, granting licensed exchanges the flexibility to provide retail trading services and products.

This system has positioned Hong Kong as a intellectual shuttle build for cryptocurrency companies wanting for a conducive regulatory atmosphere. Some analysts – including CryptoQuant Head of Marketing Hochan Chung – hang counseled that the resurgence of trading liquidity in the quandary might maybe well bolster Bitcoin’s label in the impending months.

Stablecoin regulations are making leisurely but regular growth in the United States, with the Readability for Charge Stablecoins Act receiving approval from the House Financial Services and products Committee (HFSC) in July. On the other hand, many remain doubtful that it’ll pass the Democrat-controlled Senate, which silent looks largely in opposition to the bill.

Hong Kong Crypto InvestigationsOn the other hand, as Hong Kong refines its stablecoin regulations, authorities hang launched investigations into alleged misconduct throughout the cryptocurrency retail trading sector.

The police published that eight people hang been arrested on suspicion of conspiracy to defraud in reference to the JPEX cryptocurrency substitute. Extra arrests is at risk of be made as investigations growth.

The police hang bought 1,641 complaints associated to the JPEX case, with claimants asserting that they hang been unable to withdraw their holdings from the bogus. These complaints indicate a doable sum of roughly HK$1.19 billion ($152 million) in assets in pain, as reported by the police.

 

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