Crypto News: Hong Kong Prioritizes Stablecoin Regulation In 2023

Hong Kong Hammers Down On Stablecoins

The Hong Kong Monetary Authority is of the opinion that the industry may responsibly and safely explore the possibilities of Decentralized Finance (DeFi) if appropriate guardrails are in place. As a consequence of this, the regulatory changes will place a greater emphasis on the legalization of stablecoins and will increase the collaborative ecosystem reaction to the threats of money laundering and terrorist funding.

advertisement

While speaking about the broader crypto regulations the country seeks to bring forward in 2023, the Hong Kong Monetary Authority was quoted as saying:

As a priority, we will start with regulating stablecoins that purport to reference to one or more fiat currencies, given the higher and more imminent monetary and financial stability risks that they may pose.

“We believe that with the right guardrails in place, the industry can explore the potential of digital finance in a safe and healthy manner”, the regulatory agency further added.

Trending Stories
Cryptocurrencies
Is Crypto Market Back on Recovery Track? Top 3 Cryptocurrencies To Invest In May 2023
24/7 Cryptocurrency News
ETH Price Prediction
ETH Price Prediction: Ethereum Price Eyeing $2000 Milestone Amidst Recovering Week; Enter Today?
24/7 Cryptocurrency News
SOL Price Prediction: Solana Price is Poised for 15% Growth as Buyers Break this Key Barrier
24/7 Cryptocurrency News
Top 3 Memecoins To Buy In This Dip; Dogecoin, Shiba Inu, Floki Price Analysis
24/7 Cryptocurrency News
Cryptocurrencies
Planning To Buy Dip? Top 5 Cryptocurrencies Testing Key Support
24/7 Cryptocurrency News

Read More: Chainlink Unveils Software Upgrade to Boost Node Efficiency

Growing Concerns Over Stablecoin Use

Lately, stablecoins have been witnessing rampant regulatory pressure from the United States and beyond. As reported earlier on CoinGape, regulatory agencies like the NYDFS, the Justice Department and the SEC have been cracking down on businesses offering and operating stablecoins. Paxos, was one of the latest crypto firms to suffer the brunt of a burgeoning “anti-crypto crusade” as it was asked to stop minting Binance exchange’s BUSD stablecoin.

Stablecoins, which are increasingly utilized for international transactions and remittances, have prompted the Hong Kong Monetary Authority to launch a legislative initiative as a timely response to their rising popularity. According to HK’s financial watchdog, the fact that these digital assets come with a number of advantages can also turn out to be catastrophic if they are not adequately regulated.

While some oppose the extensive regulatory framework — citing slowdowns in innovation — the larger crypto community has welcomed the decision of regulating for guaranteeing the safety and wealth of crypto users. In light of this crypto news, the price of major stablecoins such as USDC, UDT and TUSD remained pegged to the value of 1 USD while the price of Bitcoin is currently trading close to the $30K mark at the time of writing.

Also Read: U.S. SEC Runs Down Another Crypto Firm, Imposes Hefty $4M Fine

Comments

Post a Comment

Popular posts from this blog

Bitcoin Mining Pool Btc.com Suffers $3 Million Cyberattack

A major cryptocurrency mining pool has been hit by hackers earlier this month, the company who owns the pool revealed in an announcement. The incident resulted in the theft of digital assets belonging to the pool and its clients worth a combined total of $3 million. Chinese Authorities Launch Investigation Into Crypto Mining Pool Hack A subsidiary of the coin minting company Bit Mining has been targeted in a hacking attack , the company said in a press release. The affected entity is a leading bitcoin mining pool, Btc.com, which in the past week accounted for over 2.5% of the pool distribution and has a share exceeding 4% on annual basis. According to the announcement published Monday, Dec. 26, the platform was hit on Dec. 3, 2022. As a result, $2.3 million worth of digital assets owned by the company and another $700,000 in asset value belonging to its clients were stolen. The cyber attack has been reported to law enforcement in Shenzhen, China on Dec. 23. The Chinese aut...
Read more

Blockchain.com and TON Foundation introduce Toncoin incentive program

Image
Zug, Switzerland, October 18th, 2023, Chainwire Today, The Open Network Foundation ( TON Foundation ), the non-profit Swiss organization working towards growing a Web3 ecosystem within Telegram, has announced a collaborative endeavor with Blockchain.com, one of the world's most trusted and popular platforms for retail customers and institutions to buy, sell, and trade cryptocurrency.  Through this collaboration, Blockchain.com and TON Foundation will make crypto more accessible for the over 800 million monthly active users on Telegram. In September 2023, TON Space, the TON-based self-custody cryptocurrency wallet developed by the team behind Wallet, was made available in the Telegram settings menu for existing users of Wallet outside of the United States. Starting in November 2023, TON Space will be available by default in the Telegram menu for all Telegram users outside the United States. All existing and new Telegram users, excluding those in the United States, will be able to ac...
Read more

Flare (FLR) airdrops 15% of total supply to XRP holders before correcting by 76%

Image
After a 2-year wait, the layer-1 Flare blockchain has finally followed through and sent its tokens to those who held XRP at the time of the snapshot. The Flare (FLR) token Airdrop started on Mon., Jan. 9, nearly two years after a snapshot of Ripple (XRP) holders took place on Dec. 12, 2020. The FLR Airdrop was distributed at a ratio of 1.0073 FLR per 1 XRP and the initial distribution saw 15% of the total supply released to the community. A total of 28.5 billion FLR were distributed based on this methodology and according to Flare’s tokenomics, 58.3% of the total genesis FLR supply will be distributed over 36 months. Flare initial token distribution allocation. Source: Flare What is Flare? Flare is a Layer-1 Blockchain with an oracle system aiming to boost interoperability amongst decentralized applications (DApps) and blockchains. While the token only recently launched, the protocol launched its mainnet on July 11, 2022. To date, the Flare mainnet has already processed over 70 mi...
Read more