Hong Kong has not yet adopted regulations for stablecoins like Tether (USDT) or USD Coin (USDC), which means retail investors are not allowed to trade these assets until stablecoin regulation is established, expected by the end of 2024. Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui, emphasized that stablecoins have faced volatility and even collapsed in the past, highlighting the need for regulatory oversight before allowing retail trading.
Hong Kong Delays Retail Stablecoin Trading Until Regulation
Hong Kong has not yet adopted regulations for stablecoins like Tether (USDT) or USD Coin (USDC), which means retail investors are not allowed to trade these assets until stablecoin regulation is established, expected by the end of 2024. Hong Kong’s Secretary for Financial Services and the Treasury, Christian Hui, emphasized that stablecoins have faced volatility and even collapsed in the past, highlighting the need for regulatory oversight before allowing retail trading.
The official provided remarks on cryptocurrency regulation in Hong Kong during an online investment committee meeting on Oct. 6, according to the local news agency Ming Pao. Hui noted that while cryptocurrency service providers have been widely using stablecoins as a major trading asset due to their peg to the United States dollar or other assets, some stablecoins have faced serious volatility issues or collapsed.
Hui also mentioned the shuttered local cryptocurrency exchange, JPEX, which was allegedly promoting its services in the region without a license and was involved in a serious fraud case. He stressed the need for increased supervision of the cryptocurrency market.
Hong Kong regulators officially allowed retail investors to trade cryptocurrencies like Bitcoin in early August 2023. The Hong Kong Monetary Authority is expected to introduce regulatory guidelines for the stablecoin market by the end of 2024.
(HELEN PARTZ, COINTELEGRAPH, 2023)