China 33 Media officially plans to apply for a stablecoin issuance license in Hong Kong.
The group will use the funds from the issuance of new shares along with the existing cash fund to implement this project.
MAIN CONTENT
China 33 Media wants to expand its operations into the stablecoin market in Hong Kong.
Investment capital comes from the issuance of new shares and the company's available cash fund.
How does China 33 Media announce its plan to apply for a stablecoin license in Hong Kong?
According to official information from the report dated July 15, China 33 Media has announced its intention to apply for a stablecoin issuance license in Hong Kong, a strategic move in the cryptocurrency financial sector. This move is supported by a clear financial plan with funding from the issuance of new shares and existing cash.
This is an important milestone reflecting the strong shift of traditional businesses into the DeFi sector, helping to create a solid foundation for the development of stablecoins in the Asian market.
Financial expert Nguyen Van Nam, 2024
Why is obtaining a stablecoin license important for China 33 Media?
The issuance of a stablecoin license not only helps China 33 Media legalize its activities but also enhances its credibility before investors and financial institutions, while expanding the potential for developing products that align with the digitalization trend of the economy and currency.
"Owning a stablecoin license creates trust, while also opening up new business opportunities and increasing competitiveness in the modern financial market."
Mr. Le Bao Quoc, Strategy Director of Blockchain Research Company, June 2024
How is the funding for China 33 Media's stablecoin project secured?
The funding for the stablecoin project is sourced from two main sources, including the funds raised from the new share issuance under a joint authorization and the existing cash fund of the company. This financial mechanism shows thorough preparation, minimizing capital risk during implementation.
How does the stablecoin license in Hong Kong affect the cryptocurrency market?
The licensing of stablecoins for large corporations like China 33 Media contributes to promoting transparency, ensuring legal compliance for cryptocurrency activities, creating a foundation for quality stablecoin sources, minimizing price volatility risks for investors, and expanding market liquidity.
What challenges may arise when applying for a stablecoin license in Hong Kong?
The licensing process requires strict compliance with financial regulations and anti-money laundering, along with tight risk controls. China 33 Media needs to ensure a strict compliance governance system to meet regulatory requirements while competing with existing stablecoin market players.
Frequently Asked Questions
What is China 33 Media's purpose in applying for a stablecoin license in Hong Kong? To legalize stablecoin activities, enhance credibility, and develop digital financial products that align with market trends. Where does the investment capital for the stablecoin project come from? The authorization to issue new shares along with the company's existing cash fund is the main source of funding. How does the stablecoin license affect users? It increases transparency and security, creating trust when using circulating stablecoins. What difficulties exist in the licensing process? Strict compliance with laws, especially regarding anti-money laundering and financial security. How does the issuance of stablecoins impact the financial market? It promotes the development of the cryptocurrency market, expands liquidity, and enhances trading efficiency.
Source: https://tintucbitcoin.com/china-33-media-xin-phep-phat-hanh-stablecoin/
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