Hong Kong’s financial regulators have warned investors to remain cautious about unapproved former support stable rock, saying it has not issued a license for stablecoin issuers.
summary
- HKMA warns investors against trusting stablecoin projects that are not approved because their agents have not yet issued a license.
- Since the Stablecoin ordinance came into effect, market interest in the digital asset sector has skyrocketed, with many companies lined up to become Stablecoin issuers approved under the HKMA.
A recent report by SCMP shows Hong Kong’s monetary authorities have warned local investors about investments in Stablecoins pinned to the Chinese yuan. Financial institutions have reminded them that they have not yet issued licenses for Stablecoin issuers so far, so investors should remain vigilant.
In a statement released on WeChat, the HKMA denied the circulating claims on social media that the original stubcoin, officially issued under the Stablecoin ordinance from Hong Kong, already exists.
Just a week ago, Hong Kong-based company Anchorx launched its original, fixed offshore Stablecoin. The token was called axcnh. Although HKMA has not yet distributed a Stablecoin issuer license, Anchorx claims it has a valid Stablecoin license from the Astana Financial Services Bureau in Kazakhstan.
Stablecoin aims to promote cross-border payments, particularly for offshore Chinese companies and countries involved in the Belt and Road Initiative. Additionally, Anchorx has announced it plans to expand AXCNH’s use cases in digital asset trading and real-world asset tokenization.
Hong Kong’s regulators have previously said it is unlikely that they will grant a license to a Stablecoin issuer within this year.
Hong Kong’s Stub Coin Race: Who is the former stablecoins candidate?
So far, as Stablecoin Frenzy continues, there have been at least 77 institutions that have expressed interest in registering with Stablecoin publishers.
Many interested applicants include state-owned enterprises from China, such as the National Petroleum Corporation of China and the Bank of China. In particular, Petrocina is keen to explore the use of stables to promote cross-border settlements for oil and gas exports.
The interest in Surge in Stablecoin has sparked a market boom in Hong Kong’s digital assets sector. Many RWA projects have begun flights and companies have enjoyed a rise in stock prices after they announced an announcement that they will pursue Stablecoin ventures under HKMA’s Stablecoin framework.
Frenzy is reportedly ordered by the China Securities Regulation Authority to halt local securities companies’ tokenize activities in Hong Kong. According to the report, the two brokerages have been advised by the CSRC to halt the implementation of RWA activities in recent weeks.
Not only that, but at the beginning of August, the Hong Kong Securities and Futures Commission recorded an increase in fraud risk related to digital assets after the Stablecoin ordinance came into effect.