Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset
Main Idea
Hong Kong stablecoin-linked stocks experienced significant declines as new regulations took effect, but experts view this as a healthy market correction.
Key Points
1. Bright Smart Securities & Commodities Group fell nearly 20%, while OSL Group declined 10.5% amid regulatory changes.
2. Experts, including Huang from Hong Kong University of Science and Technology, describe the drop as a 'healthy correction' after speculative over-enthusiasm.
3. The Hang Seng Index and Hang Seng Tech Index also saw declines, reflecting a broader downturn in Hong Kong’s financial markets.
4. New regulations require stablecoin issuers to maintain a minimum capital of 25 million Hong Kong dollars ($3.18 million), which may filter out short-term speculation.
5. Analysts like Niko Demchuk of AMLBot and Shukyee Ma of Plume agree the correction is beneficial for long-term market stability and regulatory clarity.
Description
Stablecoin-linked stocks in Hong Kong plunged by double digits amid the city’s new regulatory transition, but experts say it's a healthy correction.
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