The stablecoin consultation report results are scheduled for release by the financial authorities in Hong Kong in the near future as part of the region’s legislative proposal to regulate the industry.
The Securities and Futures Commission (SFC), the most senior financial regulator in Hong Kong, has issued an alert against seven crypto trading platforms for operating in the region without the requisite licenses. In order to mitigate the overall risk associated with fraud and schemes, the Hong Kong SFC preserves public records of all registered and unregistered crypto exchanges. The SFC emphasizes exchanges that are either unlicensed or have false associations with Hong Kong in its alert List.
The Hong SFC has maintained the Alert List since January 2020, and it presently contains 39 entries. In 2024 alone, 28 cryptocurrency exchanges have been identified as engaging in suspicious activities. Taurusemex, Yomaex, Bitones.org, BTEPRO, CEG, XTCQT, and Bstorest are the most recent additions to this list.
Investors are misled into believing that these exchanges are registered with the SFC, as warnings suggest that they are suspected of engaging in fraudulent activities. Significant of these exchanges implemented extortion strategies, including blockading withdrawals and requiring “fees” to recommence operations.
Hong Kong regulators have implemented innovative measures to guarantee the regulatory compliance of crypto trading services since the commencement of 2024. By May 31, the SFC had already requested that all exchanges submit an application for a license. Subsequent to the deadline, the SFC has requested that exchanges terminate their stores that failed to register.
In order to preserve their presence in the region, more than 22 cryptocurrency exchanges submitted applications for licenses during this time. Nevertheless, a significant number of them ultimately opted to cancel their applications just prior to the deadline.
The stablecoin consultation report results are scheduled for release by the financial authorities in Hong Kong in the near future as part of the region’s legislative proposal to regulate the industry.
The Financial Services and the Treasury Bureau announced in a statement earlier today that they will publish the results of the December consultation on stablecoin issuers and submit the text of the legislative bill to the Legislative Council.
Regulators recommended that all stablecoin issuers that referenced fiat should obtain a license from the Hong Kong Monetary Authority, the de facto central bank that co-released the stablecoin consultation, at that date.
Earlier today, the FSTB issued a statement in which it recommended that only specific entities, such as licensed stablecoin issuers, authorized institutions, and licensed crypto trading platforms, be permitted to sell fiat-pegged stablecoin to users.
According to the statement, the proposal also intends to establish regulations for stablecoin issuers that address governance, redemption, reserve management, and stability mechanisms.
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