On July 31, the Hong Kong Monetary Authority released the "Stablecoin Regulations," which contain two particularly noteworthy provisions regarding the issuance of stablecoins. One provision requires licensed issuers not to conduct relevant business in places where trading specific stablecoins is prohibited, while the other mandates finding ways to address the risks posed by individuals using tools like VPNs to disguise their locations.

Some may wonder if this control over VPNs is specifically targeting a certain location. In fact, it is not. This is more akin to adding a "compliance insurance" to stablecoin trading, with the core principle being to prevent individuals from exploiting regulatory loopholes.

Just think, if a certain place explicitly bans trading a particular stablecoin, and someone uses a VPN to change their location, pretending to operate from an area where trading is allowed, this would obviously disrupt the normal regulatory order and could also hide risks such as money laundering and illegal fund flows. As an international financial center, Hong Kong must close such loopholes, or it could become a conduit for risk transmission.

Take the mainland for example; the country has long clearly prohibited the trading and speculation of virtual currencies. If someone were to use a VPN to pretend they were in Hong Kong or another permitted location to conduct relevant trades, this behavior naturally would also need to be regulated. This is not aimed at anyone specific, but is intended to uphold the baseline of compliance and prevent regulatory frameworks from being rendered ineffective.

In summary, the control over tools like VPNs is like installing a "navigation system" for financial transactions, ensuring that every transaction follows a compliant path. Regardless of who it is, anyone trying to circumvent local rules by disguising their location will be reminded and corrected by this "navigation system." This is not only for the stability of Hong Kong's financial market but also for maintaining the overall financial security of the country, as financial risks are not confined by geographical boundaries. #稳定币热潮