The Hong Kong Monetary Authority takes action! Digital currency regulation reaches a historic turning point.

In July, the Hong Kong Monetary Authority (HKMA) shocked the global crypto community with a document. The (Stablecoin Issuance Regulatory Framework) that took effect on August 1 not only tightened the reins on the cryptocurrency market but also marked a shift in Hong Kong's regulation of virtual assets from 'open exploration' to 'deep reform'.

Interpretation of Regulatory Details: These five key points must be understood

1. License issuance dynamics: The risk of a 'zero pass' window period
The HKMA warns at the beginning of the document: 'As of now, no institution has obtained a stablecoin issuance license.' This means that all stablecoin products in the market currently operate 'without a license.'

Eddie Yue bluntly stated: 'Some applications can't even implement the technical solutions, and there are flaws in the underlying architecture of the white paper.' This statement hides the regulatory dissatisfaction with the industry's current situation—many institutions use 'air projects' to capture market heat, while the true compliance technical threshold is severely underestimated.

2. 'Penetrating supervision' of anti-money laundering and anti-terrorism financing.
According to the latest released details, stablecoin issuers must meet the following three points:

  • Full-chain tracking of fund flow (counterparty identity verifiable)

  • Cold and hot wallet segregation (at least three layers of storage architecture)

  • Dynamic trading limit mechanism (single transaction over 500,000 HKD requires manual approval)

“This is not an ordinary filing system,” revealed an investment banker involved in the consultation, “The HKMA requires real-time retrieval of original transaction data, aligning with traditional bank KYC standards.”

3. The 'a priori elimination' mechanism for issuer licenses.
In the future, all applying institutions must cross three hard thresholds:

  1. Shareholder structure penetrating review (prohibition of offshore nested structures)

  2. Full custody of reserve assets (at least 30% cash deposited in local Hong Kong banks)

  3. Normalization of stress testing (simulating a market crash of 90% repayment capability)

Eddie Yue particularly emphasized: 'The first batch of licenses will not exceed 5; we would rather start from scratch than compromise with unqualified applicants.'

Shenzhen police reveal: How stablecoins have become new tools for fraud.

While Hong Kong is busy establishing 'compliance standards', Shenzhen, just a river away, is facing another crisis. According to the announcement from the Shenzhen Illegal Financial Activities Special Rectification Group, as of July 12, over 80 institutions have been engaging in illegal fundraising activities under the guise of 'digital HKD' and 'offshore RMB stablecoins'.

Classic scam four-step process (victim's account)

Step 1: Create the illusion of 'policy endorsement'
“They put photos of the HKMA building in the PPT, claiming to have obtained a 'preparatory license', but it was all Photoshop.”

Step 2: Create false liquidity.
“Every day the numbers in the account are increasing, but as soon as I withdraw, it prompts 'system upgrade'.”

Step 3: Fabricate government cooperation projects
“Claimed to cooperate with Shenzhen Metro to issue transportation card tokens, only to find out the contract seal was forged.”

Step 4: Cicada shedding its shell-like exit
“The app was suddenly taken down, customer service claimed 'to cooperate with regulatory review', and three months later the website couldn’t even be opened.”

Survival Rule: How should investors respond?

Action Suggestion 1: Self-check the 'identity label' of the holding currency.

Open the HKMA official website's 'Licensed Stablecoin Issuer Publicity Column' (launched in August) and check against three core pieces of information:

  • Is the issuing entity listed?

  • Is the project contract address filed?

  • Is the custodian bank a licensed institution in Hong Kong?

Action Suggestion 2: Beware of three types of high-risk rhetoric.

  • “Agency for HKMA license application” → Regulatory application requires no intermediary fees.

  • “Government guarantees a return of 8%” → Any promise of capital preservation violates the (Securities and Futures Ordinance).

  • “Joint issuance with state-owned enterprises” → Projects with state-owned enterprises must be publicly disclosed on the official website.

Industry Prediction: The Compliance Watershed Effect

According to the timeline disclosed by the HKMA, the first batch of licenses will be announced in the first quarter of 2024. Bloomberg analysts believe: 'Obtaining a license for stablecoins may gain access to circulation through Hong Kong commercial banks, similar to the 'co-branded credit card' model in traditional finance.' Projects that fail to comply will completely lose support from bank channels, and liquidity depletion may become the biggest risk point.

Global Revelation: Regulation of digital dollars and euros is heating up simultaneously.

Interestingly, on the same day that the HKMA issued its statement, the Federal Reserve released (Monetary Supervision Guideline No. 1177), requiring dollar stablecoin issuers to meet FDIC standards. ECB Executive Board member Schnabel publicly stated: 'We need a global stablecoin alliance—and Hong Kong is demonstrating how to act.'

In this regulatory race spanning East and West, the survival rule for ordinary investors is becoming increasingly clear: stay away from the gray area of 'high yield promises' and seek technically solid long-term value targets within the compliance framework. After all, when the tide goes out, only those truly wearing compliance 'swim trunks' can safely reach the shore.#稳定币 #稳定币监管 @Lagrange Official