New Hong Kong Crypto Regulations Take Effect
Hong Kong’s new cryptocurrency rules got here into impact on June 1 because the territory’s authorities seeks to bolster the area as a hub for fintech and web3. Greater than 800 fintech corporations at the moment function in Hong Kong.
Hong Kong’s new rules cowl the secure custody of property, segregation of consumer property, and cybersecurity requirements. The framework additionally consists of heightened guidelines for digital asset platforms searching for to supply merchandise to retail buyers in comparison with different jurisdictions.
Ben Roth, co-founder and CIO at Auros, a crypto buying and selling agency, instructed The Defiant that Hong Kong’s new regulatory setting is “a major step in the maturation of the industry.”
“This is an important development in crypto’s next phase of growth, and sophisticated liquidity providers will be well placed to act as the ‘grease in the wheels’ of innovation,” Roth stated.
Roth stated his agency lately noticed an uptick in curiosity in Hong Kong from “prominent capital allocators. “These players want to be well positioned to take advantage of a clear regulatory framework,” he stated.
Serra Wei, the CEO of Aegis Custody, instructed The Defiant that Hong Kong’s new digital asset licensing regime is “a game-changer for the crypto market.”
Wei stated Hong Kong’s progress serves as a “wake-up call for the US market,” including that U.S.-based crypto corporations ought to “look beyond domestic operations and embrace global opportunities” to make sure future development.
In current months, Coinbase, Circle, and Ripple have every expressed an curiosity in increasing their operations overseas in response to an more and more hostile regulatory local weather in the direction of crypto corporations in the USA.
First Digital Declares USD Stablecoin
First Digital, a Hong Kong-based belief firm, stated that it will launch a compliant dollAR-pegged stablecoin on Ethereum and BNB Chain known as FDUSD.
First Digital said its programmable stablecoin is backed by “high-quality reserves” comprising USD money and money equivalents held by regulated monetary establishments in Asia. The reserves are held in segregated accounts per Hong Kong legislation to stop the co-mingling of FDUSD reserves with different property owned by First Digital.
“First Digital is absolutely dedicated to regulatory compliance to set a brand new customary for legitimacy within the house,” said Vincent Chok, First Digital’s CEO.
Per the new rules, FDUSD won’t be available to retail traders in Hong Kong. Individuals and businesses interested in using FDUSD must contact the company via its website.
Changpeng Zhao, the CEO of Binance, tweeted about FDUSD launching on BNB Chain.
Last year, the world’s largest crypto exchange began unwinding support for prominent centralized stablecoins USDC, USDP, and TUSD amid the growing popularity of the Binance-licensed and Paxos-issued BUSD.
However, the New York Department of Financial Services ordered Paxos to stop issuing the BUSD stablecoin in February, prompting the exchange to begin relisting pairs including USDC and TUSD in recent months.
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