Hong Kong's stablecoin law opens floodgates for a boom in digital assets
Hong Kong has surged ahead of its global rivals
with its landmark stablecoin law , setting the stage for a boom in
digital assets and an injection of fresh liquidity into the market, according to brokers.
Advertisement
'We're seeing a significant trend in investments related to stablecoins on our platform, which highlights the growing importance of this sector,' said Daniel Tse, managing director of Futu Securities International, Hong Kong's largest online brokerage firm, in a written interview on Thursday.
Investors have become increasingly interested in stablecoins, which are digital tokens pegged to a reference asset like a fiat currency. This has been reflected by surging stock prices of stablecoin-related companies and a
sizzling US$1.1 billion initial public offering by the world's second-largest issuer, Circle Internet Group, which was completed in New York on Wednesday.
Hong Kong's new stablecoin law comes into effect on
August 1 and paves the way for issuance, positioning the city ahead of the US and mainland China, which has taken a cautious stance on cryptocurrencies. The city's financial and technology sectors are positioning themselves to use this in both digital assets and other traditional modes of finance.
'We are very optimistic about the increasing demand for a connection between Web2 and Web3, prompting us to build a one-stop platform,' said Tianhua Wu, founder and CEO of online brokerage Tiger Brokers, at a briefing on Tuesday. Web2 refers to the current iteration of the internet and Web3 refers to a next-generation internet decentralised and distributed through blockchain and similar technologies.
Advertisement
In the past month, Tiger Brokers expanded its deposit options to the world's largest stablecoin, Tether, as well as bitcoin, Wu said. The brokerage believes that supporting stablecoin deposits will enhance capital efficiency and flexibility in the market.
The broker said stablecoins would help reduce foreign exchange in cross-border transactions while improving user experience and fund mobility.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
36 minutes ago
- South China Morning Post
China-Niger ties challenge Beijing's cornerstone non-interference policy
Since the 2023 coup that ousted the president of Niger , Mohamed Bazoum, Beijing has consistently sought to strengthen relations with the country's military government. In line with its non-interference policy , one of the cornerstones of China's foreign policy that states that countries should not meddle in the domestic political, economic or social systems of other countries, China swiftly embraced the military junta in Niger. Notably, China provided the new military government with a substantial financial lifeline of about US$400 million in the form of an oil-backed loan to be repaid via crude oil shipments over 12 months, which helped address an immediate cash shortage. 16:09 How China is reshaping its economic ties with Africa How China is reshaping its economic ties with Africa Yet relations with China have been strained since March when the junta expelled three Chinese oil executives over disparities between the salaries of expatriate staff and lower-paid local workers and revoked the licence of a Chinese-owned hotel in Niamey, citing 'discriminatory practices and administrative violations'. The dispute escalated last month when Niger ordered China National Petroleum Corporation (CNPC) and its Soraz oil refinery to terminate the contracts of expatriate employees with more than four years' service. Observers said Niger's dispute with Chinese oil companies underscored the limits of Beijing's non-interference policy – a long-standing Chinese policy which, in practice, meant China remained essentially regime-agnostic. This approach, while intended to avoid entanglement in domestic affairs, incurred significant economic costs for Beijing, especially as some nations were experiencing a rise in nationalism, they added. According to Paul Nantulya, a China-Africa specialist from the National Defence University's Africa Centre for Strategic Studies in Washington, China's policy entails regime strengthening since Beijing tends to invest heavily in the economic priorities of the regimes or ruling parties in question.
South China Morning Post
an hour ago
- South China Morning Post
Hong Kong leader rejects taxi licence buy-back amid ‘irreversible' ride-hailing trend
Hong Kong's leader has rejected a proposal from the taxi industry for the government to repurchase licences that have depreciated in recent years due to competition from online ride-hailing services, claiming that the licences had always given cabbies exclusive rights. Advertisement Chief Executive John Lee Ka-chiu on Tuesday also said online ride-hailing was an 'irreversible trend', as he pledged to provide a regulatory framework for such platforms as soon as possible while urging taxi drivers to improve their services amid public criticism. Some leaders within the taxi trade had recently called on the government to repurchase licences for HK$5 million (US$637,100) each. They contended that its value had consistently depreciated with the rise of online ride-hailing platforms like Uber. The value of a licence has plummeted from a historic high of HK$7 million to below HK$3 million in recent months, resulting in significant financial losses for owners. 'We must be very cautious when it comes to using public funds,' Lee said when asked if he would consider the suggestion. Advertisement Lee argued that the licenses had given the sector an 'exclusive privilege' to operate the vehicles, such as using the taxi ranks, picking up passengers in designated restricted areas and getting customers from the street. 'These usages of the taxis, which are granted for a long time under the exclusive privileges of the license, have led to a direct profit on these licenses. It has also allowed taxis to gain profits under this form of operation for a long time,' he said.
South China Morning Post
an hour ago
- South China Morning Post
Calls grow in South Korea to tighten rules on Chinese-led property shopping
As the share of land and housing purchases by foreigners continues to grow in South Korea , debate is resurfacing over whether regulations should be tightened, especially amid concerns of market disruption and discrimination against locals. Advertisement While some government officials are pushing for legal reforms based on the principle of reciprocity, others caution that any regulatory move must follow a thorough assessment of market impact. According to the Ministry of Land, Infrastructure and Transport on Monday, the Seoul metropolitan government recently sent an official request to the ministry urging it to formalise reciprocity provisions in real estate-related laws such as the Real Estate Transaction Reporting Act. This followed an order from Seoul Mayor Oh Se-hoon to promptly propose countermeasures regarding foreign land and housing purchases. Reciprocity, in this context, refers to the idea that if a country restricts or prohibits real estate purchases by Korean citizens, then South Korea should impose similar restrictions on citizens from that country. Currently, no real estate law in South Korea includes such a principle. Foreign ownership of Korean real estate has been steadily increasing. As of the end of last year, foreigners owned around 268 million square metres (2.8 billion square feet) of land in South Korea – a 1.2 per cent increase from the previous year. The number of housing units owned by foreigners also rose 5.4 per cent to 100,216 units as of the end of June 2023. Advertisement According to the Supreme Court's real estate registration data, 8,655 foreign landlords registered lease contracts between January and May this year, indicating active investment. Calls for tighter rules have intensified due to the limited oversight on foreign transactions, even as foreign purchase rates climb. In particular, China bans or heavily restricts real estate ownership by Koreans within its borders, prompting critics to argue that a reciprocal system is necessary.
