China cracks down on Tether and Hong Kong to introduce stablecoin licenses: the law decoded

While Chinese authorities continue pursue stable coin to use, Hong Kong East functioning on legalize that.

More that two years After application A significant crypto to forbid, Chinese authorities are moving has crack down on using cryptocurrencies as Attached (USDT) In stranger exchange trade. China Supreme People Parquet (PPS) — THE The highest national agency responsible For legal pursuit In continent China — has warned THE public against using USDT as A intermediate has trade THE Chinese yuan with other decree currencies. THE agency issued A joint statement with THE State Administration of Stranger Exchange (ON), exhorting local civil servants has implement more strict measures against THE stable coin In cross-border stranger exchange transactions.

In THE statement, THE P.P.S. And THE ON declared that using USDT as A AVERAGE of exchange between local And stranger coins East illegal. THE authorities said their local branches should improve coordination has "to punish fraudulent stranger exchange purchases, illegal stranger exchange transactions And other stranger linked to exchanges illegal And criminal activities" In compliance with THE law.

In the meantime, Hong Kong has propose accepting And regulator "Fiat reference stable coins » (FRS), with transmitters required has get A specific local Licence. A joint consultation paper Since THE Financial Services And THE Treasury desk And THE Hong Kong Monetary Authority (HKMA) spells out THE definition of fiat reference stable coins And requires any of them companies that “actively walk their emission of FRS has THE public of Hong Kong” has be allowed by THE HKMA.

THE criteria For obtaining A HKMA Licence will include complete support of all circulated stable coins with reserves "has less equal has THE by value," segregation And guard of...