New rules for cryptocurrency trading in Hong Kong from June 1st

[zasad@]

Circular on transitional arrangements of the new licensing regime for virtual asset trading platforms
https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/licensing/doc?refNo=23EC27

https://www.reuters.com/technology/hong-kong-regulator-issue-crypto-licences-with-retail-investor-guardrails-2023-05-24/
HONG KONG, May 23 (Reuters) - Hong Kong's securities regulator said its crypto licensing regime will include measures to protect retail investors as it brings in tougher rules for digital asset companies from June 1.

https://www.coindesk.com/markets/2023/06/01/first-digital-unveils-usd-stablecoin-as-hong-kong-crypto-rules-kick-in/
First Digital Group announced today that it’s launching a USD stablecoin, FDUSD.
"The stablecoin is issued on Ethereum and BNB, a spokesperson told CoinDesk, saying that First Digital is in discussions with all major exchanges for a listing.
First Digital says FDUSD is backed by “high-quality reserves” of cash and cash equivalents in regulated financial institutions around Asia, and will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trust Ordinance."

USD stablecoin in the jurisdiction of Hong Kong is already interesting..

[1715151889]

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[1715151889]

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[joniboini]

First Digital Group announced today that it’s launching a USD stablecoin, FDUSD.
-snip-
USD stablecoin in the jurisdiction of Hong Kong is already interesting..

But it seems the token is not available for Hong Kong retail traders in the near future. Is this company backed by the government or just another company like Binance/Tether? I'm not really sure how it will work out if every company is launching its own stablecoin. Won't be surprised if most of them got shut down and only a few remain (those who allow the government or other regulatory bodies to control it). Not sure exchanges in other regions have the incentive to include specific USD tokens controlled by one or two countries unless it is big enough like Tether.

[bittraffic]

Can Gensler even sue the First Digital as for the release of this FDUSD?

Because if he can and can shut it down and forces the company then its just a company not backed by the government. But because Hongkong also backed this year token that is only for institutions, I think th Hongkong government will back First digital.

[zasad@]

Can Gensler even sue the First Digital as for the release of this FDUSD?

Because if he can and can shut it down and forces the company then its just a company not backed by the government. But because Hongkong also backed this year token that is only for institutions, I think th Hongkong government will back First digital.

Theoretically, the SEC can do anything, but if the company is not registered in the US, does not sell its services to Americans, it has a KYC and AML, and the company complies with other requirements for the regulation of cryptocurrencies, then the chances of such a lawsuit are minimal. The company does not print dollars, but simply issues shares, 1 share costs 1 dollar.

[yhiaali3]

USD stablecoin in the jurisdiction of Hong Kong is already interesting..

Yes interesting but risky at the same time Centralized stablecoins that are under the authority of the government will be worse than fiat in my opinion it is true that it is backed by the government and by real assets but on the other hand there is no privacy and your money can be held by the government without No apparent reason.

[bittraffic]

Can Gensler even sue the First Digital as for the release of this FDUSD?

Because if he can and can shut it down and forces the company then its just a company not backed by the government. But because Hongkong also backed this year token that is only for institutions, I think th Hongkong government will back First digital.

Theoretically, the SEC can do anything, but if the company is not registered in the US, does not sell its services to Americans, it has a KYC and AML, and the company complies with other requirements for the regulation of cryptocurrencies, then the chances of such a lawsuit are minimal. The company does not print dollars, but simply issues shares, 1 share costs 1 dollar.

SEC wouldn't look at this different from paxful releasing that BUSD for binance don't you think?
Binance also have those USD on paxful which binance does have real USD on them.

But I think the solution to this is collaborating regulators of Hongkong and the SEC of US.  First digital will be like the Circle or the Tether in Asian market.

[dansus021]

Oh zasad@ you should make another thread that discussed about https://www.theguardian.com/business/2023/jun/05/binance-sued-sec-cryptocurrency-accused-mishandling-funds 

Another day another SEC news, Like I was said earlier in your other post somehow SEC want to regulate all cryptocurrency and mark them as securities  What is your comment about this

[joniboini]

Yes interesting but risky at the same time Centralized stablecoins that are under the authority of the government will be worse than fiat in my opinion it is true that it is backed by the government and by real assets but on the other hand there is no privacy and your money can be held by the government without No apparent reason.

Isn't that what CBDC basically is? I believe it will happen eventually, government wants easier control at the end of the day. Not sure how other countries would apply it but I doubt cash will go anytime soon, so that is still an option. But yeah, it is hard to not feel that banks/governments will freeze your money anytime they wanted to, especially if you have limited options to store your wealth.

SEC wouldn't look at this different from paxful releasing that BUSD for binance don't you think?
Binance also have those USD on paxful which binance does have real USD on them.

I believe so. They just started suing more changes and claiming more tokens are securities, so I doubt they will let anyone issue digital USD without their approval at all. Would be interesting if they tried to fight other countries to make sure they can control everything.

[zasad@]

https://twitter.com/WuBlockchain/status/1688483493217710080
"Hong Kong Securities Commission warns that derivatives and Earning services on cryptocurrency exchanges are not allowed. Companies operating during the transition period may not be granted licenses if they violate the regulations. Trading platforms that have not applied for a license should stop operating in Hong Kong, otherwise it is a criminal offense."

[Easteregg69]

https://twitter.com/WuBlockchain/status/1688483493217710080
"Hong Kong Securities Commission warns that derivatives and Earning services on cryptocurrency exchanges are not allowed. Companies operating during the transition period may not be granted licenses if they violate the regulations. Trading platforms that have not applied for a license should stop operating in Hong Kong, otherwise it is a criminal offense."

You saw what happened to cryptopia. They died and I have a new masterplan ready to enslave you. Kill all the tyrants.

[zasad@]

https://cryptonews.com/news/za-bank-supports-over-80-web3-companies-with-commercial-banking-services.htm
"Hong Kong-based ZA Bank announced that it has been providing support for over 80 web3 companies since early this year. This is in line with its vision for “Banking for Web3,” which it introduced in April.

Among these companies is OKX Hong Kong, and ZA Bank serves as the banking partner for locally licensed Virtual asset Trading Platforms (VATPs) such as HashKey and OSL."

Industry leaders see Hong Kong as next bitcoin ETF hub amid US approval anticipation
https://www.theblock.co/post/268582/industry-leaders-see-hong-kong-as-next-bitcoin-etf-hub-amid-us-approval-anticipation

[Fiatless]

Industry leaders see Hong Kong as next bitcoin ETF hub amid US approval anticipation
https://www.theblock.co/post/268582/industry-leaders-see-hong-kong-as-next-bitcoin-etf-hub-amid-us-approval-anticipation

Some asset managers have started applying for Spot Bitcoin ETF approval in Hong Kong. Harvest Global Investments a Chinese asset management firm have indicated interest for its ETF approval. Another firm Venture Smart Financial has as said that it will file for approval. Hong Kong's Securities and Futures Commission (SFC) announced in December 2023 that they were ready to consider applications for spot ETF. There are reports that about ten companies have shown interest in applying. We might see the next Spot ETF approval happening anytime in crypto-friendly Hong Kong.

https://www.google.com/amp/s/www.coindesk.com/policy/2024/01/29/hong-kong-gets-spot-bitcoin-etf-application-stablecoin-interest-from-chinas-harvest-global-reports/amp/

[bbc.reporter]

Circular on transitional arrangements of the new licensing regime for virtual asset trading platforms
https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/intermediaries/licensing/doc?refNo=23EC27

https://www.reuters.com/technology/hong-kong-regulator-issue-crypto-licences-with-retail-investor-guardrails-2023-05-24/
HONG KONG, May 23 (Reuters) - Hong Kong's securities regulator said its crypto licensing regime will include measures to protect retail investors as it brings in tougher rules for digital asset companies from June 1.

https://www.coindesk.com/markets/2023/06/01/first-digital-unveils-usd-stablecoin-as-hong-kong-crypto-rules-kick-in/
First Digital Group announced today that it’s launching a USD stablecoin, FDUSD.
"The stablecoin is issued on Ethereum and BNB, a spokesperson told CoinDesk, saying that First Digital is in discussions with all major exchanges for a listing.
First Digital says FDUSD is backed by “high-quality reserves” of cash and cash equivalents in regulated financial institutions around Asia, and will be issued by First Digital Trust, a trust company registered under Hong Kong’s Trust Ordinance."

USD stablecoin in the jurisdiction of Hong Kong is already interesting..

Similar to what has already been speculated and mentioned since 2021 in this forum, stablecoins will stand in for the banks with the regulators' approval, to be the gateway for inflows and outflows of fiat for the cryptospace.

Also, on these new measures to protect retail investors, it has also been speculated in this forum that these measure will impose that only people from a certain income bracket would be allowed to trade cryptocoins. Another one might be if your account balance does not reach a certain level then the number of trades allowed to the customer would be limited.

[safar1980]

Hong Kong Crypto ETF Launches Will Test Ambition to Be Digital-Asset Hub
Asset managers are due to list spot-Bitcoin and Ether funds. City has a tough act to follow after the success of US ETFs

Hong Kong is set to follow in the footsteps of the US by listing a batch of cryptocurrency exchange-traded funds, providing a window on whether the city is making progress on fashioning a hub for digital assets.

Some of China’s top asset managers are in the final leg of preparations for the spot-Bitcoin and Ether ETFs to begin trading by the end of April. The launches will likely invite comparison with a slew of three-month-old US Bitcoin funds that took Wall Street by storm, garnering $56 billion in assets to date.