2025-12-31 08:22:39

Hong Kong's recent movements in the crypto market are indeed significant. On one hand, unlicensed currency exchange shops in Wan Chai and Tsim Sha Tsui are being gradually shut down, and there are widespread discussions about "tightening regulation of stablecoins"; on the other hand, traditional financial institutions like insurance funds are beginning to pay attention to crypto asset allocation opportunities. What does this wave of actions really mean?

Let's start with the most easily misunderstood point: stablecoins like USDT and USDC are not banned. The recent cleanup targets unlicensed currency exchange shops, not the stablecoin products themselves. These are two different things.

In August this year, Hong Kong's "Stablecoin Regulations" officially came into effect, with the core requirement being one word: **Compliance**. Previously, those setting up exchange points on the street and charging fees were essentially operating without licenses, in a gray area. The regulatory authorities' crackdown is a necessary move to standardize market order under the new regulations.

Here's a summary of the key information:

**1. Stablecoin License Issuance Schedule**
The Hong Kong Monetary Authority has not yet issued any stablecoin licenses to any institutions. According to official expectations, the first batch of licenses is expected to be granted in early 2026, with a limited number initially, possibly only approving a few qualified institutions.

**2. The Correct Way to Conduct Compliant Transactions**
In the future, to trade stablecoins, it is safest to do so through licensed and compliant platforms (such as major exchanges). Bypassing licensed channels to find private exchanges on your own can be risky—if you get scammed or encounter disputes, regulators cannot intervene to protect you, and the risks are entirely on you.

Overall, Hong Kong's recent regulation does not mean tightening the development space for the crypto industry but rather establishing a standardized market infrastructure. In the long run, this is actually beneficial for the healthy development of the industry.

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0xSoulless

· 10h ago

Another wave of "compliance," sounds good, but street-side currency exchange shops are just swept away in a flash, anyway, the retail investors are already used to it. --- Are insurance funds all in? Looks like we have to wait until the big players finish cutting before we hit the bottom. --- Licenses won't be issued until 2026. Who will fill the gap in the meantime? Probably just keep figuring it out ourselves. --- Compliance trading, legitimate channels, as if such a thing even exists, but in reality, it's just going in circles. --- Hong Kong is starting to build infrastructure again, while here, we haven't built anything, just waiting to be cut. --- Unlicensed currency exchange points are being shut down? Those rats will just move somewhere else next. Is that what you call regulation?

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ZenZKPlayer

· 10h ago

Oh, finally someone has clarified this issue. When the currency exchange shops on the street clear out, people start calling for a ban on stablecoins. This logic is really brilliant. The real signal is when traditional financial institutions enter the market. Regulatory compliance is actually a positive, not a bad thing. Wait until the wave of licenses around early 2026, then we can see clearly who is genuine and who is fake. Trading on licensed platforms is the rational choice. Blinding OTC trading privately can really lead to being scammed, and there's no one to blame but oneself. Hong Kong's combination punch is actually quite clever. The crackdown is gray-area but does not shake the industry’s direction. This is the appearance of mature regulation.

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BagHolderTillRetire

· 10h ago

Damn, another round of cleanup? It seems Hong Kong is trying to figure out who the real players are. USDT should still be usable, right? Don't say it's banned. Those street-side currency exchangers are the ones without licenses. Licenses won't be issued until 2026? So what are we supposed to do in these two years? Everyone has to honestly stick with exchanges? The cleanup of the gray areas should have happened long ago, but the real issue is whether compliant platforms will start charging sky-high fees—that's the real trap. Traditional finance is starting to pay attention to crypto. Really? Are they entering the market or just trying to cut the leeks?

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ForumMiningMaster

· 10h ago

Ah, another round of cleanup. I knew those currency exchange points on the street would eventually get shut down. Wait, are stablecoins not banned? I thought they were going to be phased out, but it turns out they’re just cracking down on unlicensed ones. Licenses will only be issued in 2026, the flowers are already withering. That speed is really something. It's still better to use licensed exchanges; private exchanges are too risky, lessons learned the hard way. Compliance, in the long run, is indeed good for the ecosystem, although in the short term, some people will definitely get cut. Hong Kong’s approach is pretty smart—building infrastructure instead of outright bans, much smarter than some places. Are insurance funds coming in? That’s a real signal, showing that major institutions are truly optimistic.

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ShibaSunglasses

· 10h ago

It's not about banning stablecoins, it's about cracking down on black market currency exchanges. The logic is completely different. Regulatory measures should have been enforced long ago. Those small exchange shops on the street are a disaster. Licensing only in 2026? So how do we operate in the meantime? Hong Kong's recent actions seem strict, but in reality, they are paving the way. In the long run, it's still a positive development. Traditional finance is starting to pay attention to crypto assets, which indicates that the trend has really shifted. Private exchanges are no longer an option; once you're scammed, there's nowhere to argue. Wait, does this mean only big platforms can survive? What about small and medium exchanges? Stablecoins are not banned; it's just about cleaning up the gray market activities, and it's quite thorough. Actually, this is similar to last year's OCC guidelines in New York. Compliance is the way out. Licensed platforms are definitely a must; it avoids getting cut off. Hong Kong is serious this time, this isn't just a bluff. With licenses so scarce, only a few at the start? Competition will become fierce. 2026 is still early; the transaction costs during this period will be enormous.

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