3min read
Published on: Aug 12, 2024
#Crypto 360
#Daily Brew
“The digital asset industry has made significant progress in the past few years, but we are still in a very early stage.”
Key Takeaways
To achieve its goal of becoming a leading fintech hub, Hong Kong has set an ambitious 18-month plan to overhaul its digital assets regulations. Such a move strengthens its stance as a forward-thinking region that is ready to embrace the latest innovation.
David Chiu, the Hong Kong Special Administrative Region of the People’s Republic of China lawmaker in charge of Technology and Innovation, revealed the city’s plans at the Foresight 2024 annual summit. These strategies include recruiting tech talent, developing infrastructure, and building a solid legal system. According to him, this is especially important for the IT sector in the next decade.
“The digital asset industry has made significant progress in the past few years, but we are still in a very early stage,” Chiu stated. “We should establish a sound exchange system and soon introduce legislation related to stablecoins.”
Stablecoins, a type of cryptocurrency backed by conventional assets such as fiat currency, are set to be launched in Hong Kong before the end of the year.
Such trials of the regulations have already been conducted in the sandbox, and the government plans to improve compliance with the rules around digital financial assets in the next one to two years. Also, new measures will be introduced to promote the development of other financial tools in Hong Kong.
On July 18, the HKMA announced the first batch of participants in the stablecoin issuer sandbox. This includes a local fintech company, a partnership between Standard Chartered Bank, Animoca Brands, Hong Kong Telecommunications, and a company affiliated with one of the largest online retailers in China.
Among the key players is Jingdong Coinlink Technology Hong Kong Limited, a subsidiary of JD Technology Group, which aims to launch the native stablecoin pegged to the Hong Kong Dollar (HKD). However, the company has noted that being in the sandbox does not mean it is already recognised or enabled to issue stablecoins.
Following the launch of the first Bitcoin Futures ETF, the (3066.HK), in December 2022, CSOP Asset Management, one of the largest asset managers in China, launched the first Bitcoin futures inverse product in Asia, the CSOP Bitcoin Future Daily (-1x) (7376.HK), on July 23.
Stablecoins’ regulation is part of a larger package of Hong Kong’s positive shift towards cryptocurrencies, which focuses on the growth of the market and sets clear regulatory guidelines.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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