Hong Kong raises $1.5 billion in July as new stablecoin rules take effect
Main Idea
Hong Kong has implemented new stablecoin regulations requiring full fiat backing and raised $1.5 billion in July, aiming to establish itself as a key crypto hub in Asia.
Key Points
1. The HKMA introduced strict rules for stablecoin issuers, mandating full fiat reserves in regulated banks, with the first licenses expected in 2026.
2. In July, publicly listed firms in Hong Kong raised $1.5 billion, including OSL securing $300 million and payments startup Kun raising $50 million.
3. Stablecoins are viewed as tools for payments and remittances, not just trading, though Hong Kong's payments market is already highly competitive.
4. The HKMA is taking a measured approach to licensing, focusing on stability and regulatory compliance, with no licenses issued yet.
5. Investments are increasingly targeting tokenized real-world assets, reflecting broader adoption beyond traditional crypto trading.
Description
Hong Kong has entered a new phase in digital finance with the introduction of its Stablecoin Ordinance on August 1, a move designed to establish the city as a key crypto hub in Asia. The law requires companies issuing stablecoins to obtain licences from the Hong Kong Monetary Authority (HKMA), which has set out detailed requirements covering reserves, custody, governance, and anti-money laundering controls. The regulation arrives as fintech companies in the city raised more than $1.5 billion in ...
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