Hong Kong authorities will ban the local retail investors to trade in stablecoins – Bits Media

Hong Kong will prohibit retail investors to trade in stablecoins in the region, The rules for their release and use are not yet presented. Guide principles should appear in 2024 year.

Hong Kong Finance Minister Christian Hui (Christian Hui) explained, What is this The ban is aimed at protecting investors from risks, associated with stablecoins. Hui mentioned the collapse of the terra ecosystem in 2022 year and a possible fifting of stablecoin from state currencies. He also expressed concerns about insufficient reserves among emitters of stablecoins, Therefore, in the case of collapse, Investors will not be able to redeem their assets.

Hui added, that residents of Hong Kong will be allowed to trade in stablecoins on cryptocurrency exchanges only after the appearance of a complex legal base, regulating launch and trade in stable cryptocurrencies. Hong Kong authorities are working on the set of rules, adhering to a gradual approach to their implementation.

At the beginning 2023 year management of monetary circulation of Hong Kong (Hkma) Published recommendations, which are already held the second round of public consultations. Despite the relatively slow pace of development of stablecoin regulation, Hkma said, that these rules may well be implemented in the middle of next year. However, the government is unlikely to support the launch of algorithmic stablecoins, The department marked.

In September, HKMA forbade suppliers of virtual assets services (VASP) use the word “bank” and “deposit” in the description of your business, since they can mislead the public.