Hong Kong Crypto money regulations passed an important threshold. The new Stablecoin law approved by the Legislative Council brings traditional finance and crypto currencies in the same frame. Supported with only legal currencies with the regulation in 1: 1 ratio stablecoin‘s will be allowed to be licensed. The new undergraduate program will enter into force completely by the end of the year.
Licensed Stablecoin Period begins in Hong Kong
Hong Kong Legislative Councilhas accepted the Stablecoin Draft Law, which has been preparing for a long time, opened the door of a new era in the crypto currency market in the region. With the law Hong Kong Monetary Authority (HKMA) will provide stablecoin licenses to financial institutions that provide certain qualifications. The process will begin with application purchases towards the end of the year and will be fully operational at the end of the year.
One of the main conditions of the law is to allow only legal -supported stablecoins. This way will be released crypto currencyThe transparent, reliable and controlable will be ensured. Consumer security stands out as one of the priority targets of the law. Stablecoin projects will be developed in accordance with traditional banking principles.
Payment and interest period with stablecoins begins
With the passing of the law, Hong Kong’s web3 targets moved back to the agenda. Legislative Council Member Johnny ng Kit-Chongstressed that the new regulation is just a beginning. He emphasized that the usage area of Stablecoins should be expanded and a part of daily life. NG proposed a roadmap for stablecoin effective use, especially for individual payments, cross -border trade and interchangeable transfers.
Moreover, there is a remarkable detail among NG’s suggestions. It is also sharing interest income from licensed stablecoins with users. This idea aims to increase user loyalty and provide competitive advantage. Thus, stablecoins may become attractive not only as a payment tool, but also in terms of investment.
On the other hand, global stablecoin market continues to grow. While the total market value is based on $ 250 billion, the daily transaction volume has reached 80 billion dollars. According to coinmarketcap data, the big stablecoin is still Tether (USDT) and it respectively USD Coin (USDC), Dai (DAI), Ethena Usde (USDE), World Liberty Financial USD (USD1) and First Digital USD (FDUSD) follows.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
