Hong Kong, which allows individual investors to buy and sell cryptocurrencies as of June, is preparing for its new move. The roadmap that Hong Kong, the financial center of Asia, will follow regarding crypto is eagerly awaited. Especially considering the crypto-hostile regulations of the US, Asia has critical importance.
Hong Kong lawmaker Duncan Chiu announced today that consultations are ongoing for stablecoin issuers. The lawmaker, who is working on the stablecoin issuance guidelines, aims to create an environment where regulated stablecoins will originate from Hong Kong. According to the news in the Hong Kong media, Chiu stated in a speech at a forum held in Shanghai that guidelines for stablecoin issuers would be published in Hong Kong in the middle of next year.
While Hong Kong is trying to transform itself into a center for the Web3 economy and innovation, the statements made were not surprising. Unlike China, the autonomous region is eager about its Web3 goals, which also include cryptocurrencies. In June of this year, Hong Kong initiated the licensing process for crypto exchanges, allowing individuals to legally buy and sell cryptocurrencies, despite the low volume.
To see how cryptocurrencies will be regulated by governments in the future, we can look at MiCA, Hong Kong regulations, and similar things. Most likely, each government will allow the spread of crypto on legitimate grounds under surveillance by establishing similar standards. For example, although Hong Kong initiated the licensing process for cryptocurrency exchanges, it takes a strict stance against crypto scammers. There are also subsidiary institutions that rigorously oversee the altcoins to be listed on exchanges.
Hong Kong police announced today that they have arrested eight people on suspicion of a fraud conspiracy related to the cryptocurrency exchange JPEX and they may arrest more as the investigations continue. The investigation into the fraud case, which caused a loss of $152 million, is ongoing. While regulations continue, such criminal cases may reveal the need for competence rules in areas that have been overlooked by exchanges.