The myth of stablecoin preserving capital has collapsed! Hong Kong will launch a "bloodbath" regulation in August, and your investments are being precisely targeted
When the regulatory knife strikes stablecoins, the 'capital preservation myth' in the crypto world should awaken!"
Core of the event: Hong Kong strikes hard; stablecoins are no longer a "lawless land"
Hong Kong Financial Development Council Chairman Hong Pi Zheng recently stated: Stablecoins should not be used as short-term speculative tools, and a regulatory system will officially launch in August! This statement directly shatters the illusion in the crypto world that "stablecoin = capital preservation". According to the new regulations, all stablecoin projects involving public funds must operate with a license, reserves must be 100% transparent, and undergo regular third-party audits, with violators facing penalties that could lead to "bankruptcy"!
Personal Opinion: Hong Kong’s strike is aimed at chaos, but it saves the market
Regulatory warnings have long been evident:
This year, Hong Kong has already implemented a licensing system for virtual asset service providers, but stablecoins have always been in a "grey area". Hong Pi Zheng's statement effectively draws a red line for the market; want to use stablecoins to raise funds? First, pass the compliance check!
The historical lessons are too painful:
The 2022 Terra UST de-pegging incident saw a market value of $40 billion evaporate overnight; in 2023, a stablecoin project was exposed for misappropriating 90% of its reserves to speculate on cryptocurrencies, causing an 80% crash. Hong Kong's move is aimed at plugging the loopholes of "opaque funding pools". The "tough character" background of Hong Pi Zheng:
As a former senior executive of the Hong Kong Monetary Authority, Hong Pi Zheng has led multiple financial reforms. This time he specifically named stablecoins, suggesting that Hong Kong aims to seize the position of the "global crypto compliance center", attract legitimate players, and eliminate the barbaric growth of "funding schemes".
Investors must read: How to avoid the pitfalls of stablecoins after August
Common misconception: "Low-cap stablecoins yield high returns, shall I take a gamble?"
After August, unlicensed stablecoins will be directly delisted! What is still being speculated on now might be the "last frenzy"
Hong Kong's new regulations require that proof of reserves must be made public. Although USDT claims to have "100% reserves", it has been exposed for mixing commercial paper, and may be required to "hard peg" in the future.
Conclusion: Can your stablecoin pass this test in Hong Kong?
Hong Kong's strike is aimed at chaos but saves trust. When "capital preservation" becomes "genuine capital preservation", the crypto world can bid farewell to the vicious cycle of "harvesting retail investors"!
#GENIUS Stablecoin Legislation
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