Secretary of the Treasury Bureau of Hong Kong: Retail trading will not be allowed until Hong Kong’s stablecoin regulatory framework is released
Secretary for the Treasury Secretary Hui Ching-yu of Hong Kong stated in a program of the Investment and Financial Education Committee that serious fraud cases on unlicensed virtual asset trading platforms such as Jpex and FTX reflect the risks of unregulated platforms and the importance of supervision.
Xu described that the risks of investing in unregulated platforms are high because these platforms lack transparency and may not necessarily be stable in operation. If investors have disputes with the platform, they may have no way to complain; if the platform goes bankrupt, ceases operations, commits fraud, breach of contract or even theft, , investors are likely to lose all their assets deposited on these platforms.
In the past, many virtual asset trading platforms used stablecoins such as USDT as trading media. Xu Zhengyu said that relevant currencies in the market would support their value with US dollars or gold, with the goal of stabilizing prices. However, there have been stablecoin prices in the past. Volatility or even collapse. Xu pointed out that the reserve management of stablecoin issuers will affect price stability and investors’ rights to redeem fiat currency. Considering these factors, until Hong Kong officially regulates stablecoins, retail trading will not be allowed for the time being.
