Hong Kong regulatory officials raised several points during the interview. Even if the exchange is a licensed platform, it is not allowed to allow retail investors to trade stablecoins. Currently, retail investors can only buy and sell BTC and ETH. All other currencies need to apply and are not allowed to provide income products.
JPEX case reflects the need for regulation
According to Hong Kong Ming Pao, Secretary for Financial Services and the Treasury Hui Ching-yu pointed out that the serious fraud involved in JPEX has reflected the need for supervision. He compared FTX to Hong Kong’s JPEX:
The risks of investing in unregulated platforms are high. These platforms lack transparency and their operational stability is questionable. Investors may have no way to complain if they have disputes with the platform. Moreover, if the platform goes bankrupt, ceases operations, or is even stolen, investors are likely to lose everything. Assets stored on the platform.
Hong Kong still bans retail investors from trading stablecoins
Xu Zhengyu pointed out that although there are many trading platforms that use stablecoins such as USDT as trading media, there have been price fluctuations and even collapses of stablecoins in the past. In addition, the "reserve management" of stablecoin issuers will also affect currency prices. and the rights and interests redeemed by users.
In view of the above uncertainties, Xu Zhengyu emphasized that retail trading of stablecoins will not be open for the time being until Hong Kong officially regulates stablecoins.
Hong Kong’s previous disclosure of regulatory framework also included this matter:
(Hong Kong crypto regulation is on the road on 6/1: Exchanges have a heavy responsibility to protect retail investors and are temporarily not allowed to buy or sell stablecoins)
Licensed platforms are also not allowed to provide pledge and income products
As for the common income products in offshore exchanges, including income products that provide users with additional interest through pledges and deposits, Huang Lexin, an executive of the China Securities Regulatory Commission, said that the platform needs to be more neutral. In order to prevent conflicts of interest, it is not currently allowed. Licensed platforms provide the above services.
Huang Lexin also pointed out that licensed platforms are currently only open to retail investors to buy and sell BTC and ETH, and new currencies need to submit an application to the China Securities Regulatory Commission and can only be bought and sold after approval.
This article Hong Kong officials: Hong Kong still prohibits retail investors from trading stablecoins, and exchanges are not allowed to provide income products first appeared on Chain News ABMedia.
