Contrasting Crypto Strategies: China’s Clampdown vs. Hong Kong’s Regulatory Embrace
China, which implemented a comprehensive crypto ban over two years ago, is now specifically targeting the use of cryptocurrencies in foreign exchange trading, warning people not to use USDT for exchanging the Chinese yuan with other fiat currencies.
The Supreme People’s Procuratorate (SPP) of China and the State Administration of Foreign Exchange (SAFE) issued a joint statement advising against utilizing USDT for the exchange of the Chinese yuan. They emphasized the need for heightened vigilance and stricter enforcement measures against the use of stablecoins in cross-border foreign exchange transactions.
On the other hand, Hong Kong is proposing a regulatory framework for “fiat-referenced stablecoins” (FRS), requiring stablecoin issuers to obtain a specific license from the Hong Kong Monetary Authority (HKMA).
This plan includes a requirement for stablecoin issuers, who actively market their issuance of FRS to Hong Kong’s public, to obtain a specific license from the HKMA to be eligible for this license.
China is taking a hard line against the use of stablecoins in financial transactions, while Hong Kong is laying down a structured path for their regulated use.
Hot Take: Evolving Cryptocurrency Regulation in China and Hong Kong
These contrasting moves by China and Hong Kong underscore the divergent paths being taken by the two regions in the realm of cryptocurrency regulation and the evolving landscape of global cryptocurrency regulation.
By
By
By
By