After the stablecoin regulations in Hong Kong were launched on August 1st, various parties have slowly interpreted and clarified them.
Therefore, USDC, USDT, and other dollar stablecoins (non-HKD stablecoins) do not need to apply for a stablecoin license in Hong Kong.
Whether users can withdraw USDT and USDC in Hong Kong as HKD is governed by OTC licenses and is not subject to stablecoin regulations.
Apart from USDC/USDT and these dollar stablecoins, other types of virtual currencies wishing to be listed on licensed exchanges in Hong Kong, allowing Hong Kong users to buy and sell on licensed exchanges, must meet:
1) The strict standards of the Hong Kong Securities and Futures Commission (SFC)
2) Inclusion in at least two major independent investment companies' investable indices
Beyond these two conditions, whether a token can ultimately be listed depends on the review standards and policies of various exchanges in Hong Kong.
The new regulations from the Hong Kong Securities and Futures Commission (SFC), effective June 1, 2023, have some basic requirements regarding which tokens are allowed for trading by retail investors in Hong Kong. First, the token must have at least 12 months of regulatory compliance. During this period, the projects associated with these tokens should not be subject to any criminal charges.
Similar to Singapore, only a few types of virtual currencies are listed on licensed exchanges in Hong Kong, and retail investors looking to trade a wider variety of coins can only go to offshore exchanges like Binance or directly to DEXs. Listing a token on an offshore exchange does not require government review; it only needs to meet the exchange's own listing standards, which means that retail investors face higher risks accordingly.
