The cryptocurrency market has really suffered recently, with both Hong Kong and the mainland launching a heavy crackdown on stablecoins; the regulatory storm has truly arrived!
Mainland: Complete ban, they are serious!
The authorities have clearly stated that stablecoins are illegal financial activities! Not only are they not allowed to operate, but those who do will also face criminal liability. So far this year, over 300 related cases have been handled, with 4.6 billion in funds intercepted. This level of enforcement is clearly aimed at clearing obstacles for the development of the digital RMB.
Hong Kong: Major rule changes, retail investors step aside!
Hong Kong's new regulations have taken effect; since the issuer Tether did not obtain a license, ordinary retail investors can no longer trade USDT, and only professional investors can participate. Hong Kong aims to raise the bar to filter out compliant institutions, using stablecoins in practical areas like cross-border trade and tourism consumption.
Massive capital migration: USDT trading in the mainland is about to cool down, with funds either obediently flowing towards digital RMB or seeking new compliant pathways.
Opportunities for compliant currencies: Stablecoins like USDC, which are more transparent and compliant, might seize the chance to gain popularity.
Hong Kong's intentions: Hong Kong intends to attract large institutions with strict regulations, creating a high-end financial testing ground.
With the largest stablecoins restricted in two major core markets, does this mean the industry is facing a new round of reshuffling? Can Hong Kong's sandbox experiment become a new gateway for mainstream capital in the future? Let’s wait and see!
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