Hong Kong’s new cryptocurrency regulations 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 present function in Hong Kong.
Hong Kong’s new rules cowl the protected custody of belongings, segregation of consumer belongings, and cybersecurity requirements. The framework additionally consists of heightened guidelines for digital asset platforms in search of to supply merchandise to retail traders in comparison with different jurisdictions.
Ben Roth, co-founder and CIO at Auros, a crypto buying and selling agency, advised The Defiant that Hong Kong’s new regulatory surroundings is “a serious step within the maturation of the business.”
“This is a vital growth in crypto’s subsequent section of progress, and complex liquidity suppliers shall be effectively positioned to behave because the ‘grease within the wheels’ of innovation,” Roth mentioned.
Roth mentioned his agency lately noticed an uptick in curiosity in Hong Kong from “outstanding capital allocators. “These gamers wish to be effectively positioned to benefit from a transparent regulatory framework,” he mentioned.
Serra Wei, the CEO of Aegis Custody, advised The Defiant that Hong Kong’s new digital asset licensing regime is “a game-changer for the crypto market.”
Wei mentioned Hong Kong’s progress serves as a “wake-up name for the US market,” including that U.S.-based crypto corporations ought to “look past home operations and embrace international alternatives” to make sure future progress.
In latest months, Coinbase, Circle, and Ripple have every expressed an curiosity in increasing their operations overseas in response to an more and more hostile regulatory climate in the direction of crypto corporations in america.
First Digital Declares USD Stablecoin
First Digital, a Hong Kong-based belief firm, mentioned that it might 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 regulation to stop the co-mingling of FDUSD reserves with different belongings owned by First Digital.
“First Digital is absolutely dedicated to regulatory compliance to set a brand new commonplace for legitimacy within the area,” mentioned Vincent Chok, First Digital’s CEO.
Per the brand new guidelines, FDUSD received’t be accessible to retail merchants in Hong Kong. People and companies fascinated about utilizing FDUSD should contact the corporate through its web site.
Changpeng Zhao, the CEO of Binance, tweeted about FDUSD launching on BNB Chain.
Final yr, the world’s largest crypto alternate started unwinding help for outstanding centralized stablecoins USDC, USDP, and TUSD amid the rising recognition of the Binance-licensed and Paxos-issued BUSD.
Nonetheless, the New York Division of Monetary Companies ordered Paxos to cease issuing the BUSD stablecoin in February, prompting the alternate to start relisting pairs together with USDC and TUSD in latest months.
