Hong Kong’s Stablecoin Law Excludes USDT and USDC From Regulation

According to lawyer Gilbert Ng, the new framework only applies to stablecoins issued locally or pegged to the Hong Kong dollar, while OTC trading remains legal.

USDT
USDC

Summary

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Terms & Concepts
  • Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as a fiat currency.
  • KYC (Know Your Customer): A regulatory process requiring financial institutions to verify the identity of clients to prevent money laundering and fraud.
  • OTC Trading: Over-the-counter trading refers to direct transactions between parties outside of centralized exchanges.