The second-round of consultation for issuing stablecoins is ongoing in Hong Kong. Lawmaker Duncan Chiu’s statements indicate that discussions are underway with the aim of releasing these rules by mid-2024, as per local news reports.
Unlike China, Hong Kong is taking a more friendly approach toward companies involved in cryptocurrencies. In June, licensed exchanges were granted permission to offer cryptocurrency trading services.
Some experts in Hong Kong are advocating for the government to develop its own stablecoin, HKDG, to compete with existing stablecoins like USDT and USDC. They believe that relying solely on private companies to issue stablecoins may not be the best approach.
Simultaneously, Hong Kong authorities are probing cryptocurrency exchange JPEX for alleged fraud, leading to the arrest of eight individuals, with more potential arrests pending. Customers have faced withdrawal issues involving approximately $152 million.
Also Read: Hong Kong Police Arrested Social Media Influencer In JPEX Saga
Hong Kong’s progressive stance on cryptocurrency regulation and potential development of its stablecoin signal a promising future, but recent fraud allegations and arrests highlight the need for robust oversight in the industry.
