new hong kong cryptocurrency regulations It came into effect on June 1 as the territory's government seeks to boost the region as a hub for fintech and web3. More than 800 fintech companies currently operate in Hong Kong.
Hong Kong's new regulations cover safe custody of assets, segregation of client assets, and cybersecurity standards. The framework also includes stricter rules for virtual asset platforms looking to offer products to retail investors compared to other jurisdictions.
Ben Roth, co-founder and CIO of Auros, a cryptocurrency trading company, told The Defiant that Hong Kong's new regulatory environment is "an important step in maturing the industry."
โThis is an important development in the next phase of cryptocurrency growth, and sophisticated liquidity providers will be well placed to act as the 'grease on the wheels' of innovation,โ Roth said.
Roth said his firm recently noted a surge in interest in Hong Kong from โprominent equity dealers. โThese players want to be well positioned to take advantage of a clear regulatory framework,โ he said.
Serra Wei, the chief executive of Aegis Custody, told The Defiant that Hong Kong's new virtual asset licensing regime is "a game changer for the crypto market."
Wei said Hong Kong's progress serves as a "wake-up call for the US market," adding that US-based crypto firms should "look beyond domestic operations and seize global opportunities" to ensure future growth.
In recent months, coin base, Circleand Vibe have expressed interest in expanding their operations abroad in response to a growing hostile regulatory climate towards crypto companies in the United States.
First Digital Announces USD Stablecoin
First Digital, a Hong Kong-based trust company, said it would launch a dollAR-pegged stablecoin on Ethereum and BNB Chain called FDUSD.
digital firsts saying Its programmable stablecoin is backed by "high-quality reserves" comprising USD cash and cash equivalents held by regulated financial institutions in Asia. Reserves are held in separate accounts under Hong Kong law to prevent mixing of FDUSD reserves with other assets owned by First Digital.
"First Digital is fully committed to regulatory compliance to set a new standard for legitimacy in the space," said Vincent Chok, CEO of First Digital.
Under the new rules, FDUSD will not be available to retail traders in Hong Kong. Individuals and businesses interested in using FDUSD should contact the business through its website.
Changpeng Zhao, CEO of Binance, tweeted about the launch of FDUSD on BNB Chain.
Last year, the world's largest crypto exchange started. chill out support for prominent centralized stablecoins USDC, USDP, and TUSD amid the growing popularity of BUSD licensed from Binance and issued by Paxos.
However, the New York Department of Financial Services tidy Paxos will stop issuing the BUSD stablecoin in February, prompting the exchange to begin relisting pairs including USDC and TUSD in recent months.
