Jihong Co., Ltd. currently has no plans to apply for a stablecoin issuance license.
Jihong Company asserts that it does not intend to participate in the stablecoin market in the near future, focusing on its current business areas.
MAIN CONTENT
Jihong Co., Ltd. has no plans to apply for stablecoin licensing.
Information was clearly published on July 7 from a reliable source.
Jihong prioritizes continuing to develop existing business areas.
Is Jihong Co., Ltd. preparing to participate in the stablecoin market?
Jihong Co., Ltd. confirms that it has no plans to register for stablecoin issuance in the near future, according to an official statement.
The information was confirmed on July 7 by Director Jinshi, affirming that Jihong's business strategy does not include expanding into the stablecoin sector. This clearly reflects a focus on existing projects and avoiding new legal risks surrounding the increasingly regulated DeFi stablecoin space.
“We do not currently intend to apply for a license or implement the issuance of stablecoin as we want to strengthen our foundation and optimize existing products before expanding.”
Jinshi, Director of Jihong Co., Ltd., 07/2024
Why does Jihong choose not to apply for a stablecoin license?
This decision reflects Jihong's caution in the context of increasingly strict stablecoin regulations and a fierce competitive environment.
Issuing stablecoin requires compliance with many legal standards, from reserve management to financial transparency. Jihong prioritizes focusing on developing existing product lines, minimizing legal and financial risks, while maintaining a stable position in the market.
How does not participating in stablecoin affect Jihong?
Not expanding into the stablecoin sector helps Jihong maintain financial flexibility and avoid new legal risks.
While many other companies rush to apply for stablecoin licenses to expand their financial ecosystem, Jihong chooses a conservative yet sustainable path, focusing on improving service quality, thereby reinforcing long-term customer trust.
A quick comparison of cryptocurrency businesses' options regarding stablecoin
Business factors want to apply for stablecoin Jihong Co., Ltd. Business strategy Expand ecosystem, increase liquidity Focus on core products, limit risks Legal risks Must comply strictly, high risk of being controlled Avoid new legal complexities Financial investment Requires significant capital for reserves, audits Save costs, increase capital for existing sectors
Frequently Asked Questions
Will Jihong change its strategy in the future? According to CEO Jinshi, there are currently no plans for short-term changes.
What is a stablecoin and what impact does it have? A stablecoin is a cryptocurrency pegged to stable assets, helping to reduce volatility and making it easy to use in transactions.
Why do some companies choose not to participate in stablecoin? Due to legal risks and high operating costs, many businesses focus on their core business areas.
Can Jihong participate in stablecoin later? Possibly, depending on market circumstances and legal policies.
Does not issuing stablecoin affect Jihong's reputation? No; this is a strategic decision to ensure stable development.
Source: https://tintucbitcoin.com/jihong-holdings-chua-xin-phep-stablecoin/
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