"Hong Kong Stablecoin Regulation Foundation for Selling"
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According to a report by cryptocurrency-specialized media Cointelegraph, the Beijing authorities plan to sell cryptocurrencies they have seized through Hong Kong exchanges, aiming to elevate Hong Kong as an Asian cryptocurrency liquidity hub, as reported on the 4th.
Currently, despite the policy of a complete cryptocurrency ban within China, the government is using Hong Kong as a major cryptocurrency testing ground. Following the reopening of the cryptocurrency market in 2023, Hong Kong authorities are gradually developing the market through additional regulatory establishment.
This is news that China will expose large quantities of cryptocurrencies it currently holds in the emerging Hong Kong cryptocurrency market. The Chinese government ranks second in global cryptocurrency holdings.
Specifically, the Chinese government announced it will conduct cryptocurrency sales based on the stablecoin regulations to be implemented by the Hong Kong Monetary Authority from August, strategically supplying liquidity in the Hong Kong cryptocurrency market.
The Chinese government specifically stated it will proceed with cryptocurrency sales based on Hong Kong's regulatory framework, including anti-money laundering (AML) and anti-money laundering ordinance (AMLO).
Joshua Chu, co-chairman of the Hong Kong Web 3.0 Association, said, "Clearing cryptocurrencies seized by China through licensed exchanges will provide substantial market liquidity" and that cryptocurrency clearing would be a strategic means of price adjustment and market stabilization beyond FATF compliance. He further emphasized, "While the US maintains a 'holding-only' policy centered on BTC holdings, China can respond to market volatility by actively supplying liquidity through Hong Kong."
Reporter Jung Ha-yeon yomwork8824@blockstreet.co.kr
