In Hong Kong, retail stablecoin trading has not yet been approved, the official says

As Hong Kong is moving forward with the adoption of kriptovalyutnogo business for individual investors, a local official stressed that retail stablecoin business is not yet allowed.

The official made comments about cryptocurrency regulation in Hong Kong at the online investment committee meeting on October 6, local news agency Ming Pao reported.

Cryptocurrency service providers have been using stablecoins like USDT as their primary transaction value because their value is pegged to the United States dollar or assets like gold, Hui said. However, some storkcoins have experienced high volatility and even collapsed, the author said, adding that stoccoin reserve management greatly affects the price stability of investors' right to buy fiat currencies.

Given these concerns, Hong Kong will not allow retail trading of Stalkcoins, Hui announced.

Hui also said that the shuttered local crypto exchange JPEX – which was said to be promoting its services in the region without a license – was involved in serious fraud, which called for greater regulation of the cryptocurrency market.

Cointelegraph reached out to the Hong Kong Securities and Futures Commission about stablecoin trading in the country. This article will be updated pending new information from the regulator.

Related: Hong Kong police recover $11 million in JPEX case: Report

JPEX has suspended some services on the platform from mid-September 2023, citing liquidity problems triggered by “unfair treatment” from some institutions in Hong Kong. JPEX quickly became the center of a major scandal in the industry, with Hong Kong authorities launching an investigation after receiving more than 2,000 complaints from JPEX users reporting losses of nearly $180 million.

The JPEX issue comes just weeks after Hong Kong regulators officially allowed retail investors to trade in retail currencies like Bitcoin (BTC) as early as August 2023. The Hong Kong Monetary Authority is expected to introduce regulatory guidelines for the stablecoin market by the end of 2024.

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