Regulation
Standard Chartered, Animoca Brands Enter Hong Kong Stablecoin Sandbox
On Thursday, July 18, the Hong Kong Monetary Authority (HKMA) announced the list of participants for its stablecoin issuer sandbox. This initiative, launched in March 2024, aims to boost a sustainable and responsible development of the stablecoin ecosystem in Hong Kong. Key sandbox participants include Standard Chartered Bank and Animoca Brands.
Hong Kong’s Stablecoin Sandbox Details
The other participants include Jingdong Coinlink Technology, RD InnoTech, and Hong Kong Telecommunications. HKMA selected these institutions based on their genuine interest and impressive business plans for development of stablecoins in Hong Kong. Hence, they will start participating in the sandbox effective immediately.
Moreover, the HKMA emphasized that these operations will be conducted within a limited scope and under a risk-controllable framework. The sandbox is part of the HKMA’s broader effort to establish a regulatory regime for fiat-referenced stablecoin (FRS) issuers.
On July 17, the Financial Services and the Treasury Bureau (FSTB) and the HKMA jointly released the consultation conclusions on the legislative proposal for this regime. The consultation, conducted over two months and concluded in February, received 108 submissions from various market participants, industry associations, and other stakeholders.
Binance and Circle also participated in the Hong Kong regulatory consultation. A vast majority of respondents supported the introduction of a regulatory framework for FRS issuers. This support is rooted in the increasing prevalence and evolving nature of virtual assets.
It also reflects the need to manage potential monetary and financial stability risks effectively. Hence, the proposed regulatory requirements and implementation arrangements received broad support. Meanwhile, the respondents also suggested some changes to the regime.
Also Read: USDT and USDC at Risk as BIS Endorses Only Permissioned Stablecoins
Official Statements By HK Authorities
The Secretary for Financial Services and the Treasury, Mr. Christopher Hui weighed in the development. He stated, “In addition to the existing regulatory regime for VA trading platforms, the establishment of a licensing regime for FRS issuers will further strengthen the VA regulatory framework in Hong Kong in line with international standards and effectively mitigate possible financial stability risks associated with FRS issuance activities.”
The Chief Executive of the HKMA, Mr. Eddie Yue, expressed gratitude for the valuable feedback received during the consultation period. He noted, “We are grateful for the respondents’ valuable comments and are encouraged by the general support for the proposed regulatory regime. We believe that a well-regulated environment is conducive to the sustainable and responsible development of the stablecoin ecosystem in Hong Kong.”
Sandbox Operations And Safeguards
Hong Kong Monetary Authority’s sandbox allows selected institutions to test their stablecoin issuance operational plans within a controlled environment. This initiative facilitates two-way communication on proposed regulatory requirements. Hence, it aids in the formulation of a fit-for-purpose and risk-based regulatory regime.
Thus, participants are expected to comply with stringent sandbox requirements. Initially, they will not handle the general public’s funds or solicit funding from the public. The HKMA has cautioned the public to remain vigilant against potential scams related to the sandbox and promised timely announcements if sandbox participants are allowed to handle public funds under limited scope adjustments.
The sandbox is designed to enable participants to develop and refine their stablecoin issuance models while ensuring risks are minimized. This step-by-step approach aims to balance innovation with the need for robust regulatory oversight. This enables a secure and dynamic environment for virtual asset development in Hong Kong.
Also Read: Breaking: State Street Eyes Stablecoin & Token Launch
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In what is being dubbed a major development in the crypto regulation space, the Governor of the US state of Kentucky, Andy Beshear, has signed the ‘Bitcoin Rights’ bill into law. The law promises to safeguard protections for Bitcoin (BTC) users.
Bitcoin Rights Bill Comes Into Effect
Crypto regulations continue to evolve under pro-crypto US President Donald Trump’s administration. In the latest development, Kentucky has become the newest state to enshrine protections for digital asset users.
In an X post published on March 24, crypto advocacy group Satoshi Action Fund announced that Governor Beshear had signed the much-anticipated Bitcoin Rights bill into law. The post stated:
The right to self-custody, run a node, and use of digital assets is now protected for millions of Americans without fear of discrimination.
The bill was first introduced to the Kentucky House by Rep. Adam Bowling on February 19. According to the bill’s description, it seeks to safeguard users’ rights to use digital assets and self-custody wallets. Additionally, it aims to prohibit local zoning changes that discriminate against crypto mining operations.
The legislation outlines guidelines for running a digital asset node and excludes digital asset mining from money transmitter license requirements. It also clarifies that crypto mining or staking is not considered an offer or sale of securities.
On February 28, the bill passed Kentucky’s House of Representatives with a unanimous vote of all 91 representatives in favor. It later passed the Kentucky Senate on March 13, receiving backing from all 37 senators.
Kentucky’s proactive stance toward cryptocurrencies isn’t new. Earlier this year, the state became the 16th US state to introduce legislation seeking to create a Bitcoin strategic reserve.
Meanwhile, neighboring state Arizona is also joining the crypto movement. A recent X post by Bitcoin Laws revealed that Arizona’s House Rules Committee has passed two Bitcoin reserve bills — SB1373 and SB1025. These bills will now head to a full floor vote.
Renewed Optimism Under Trump Administration
Following Trump’s victory in the November presidential election, cryptocurrency regulations in the US are evolving rapidly, with many states introducing legislation aimed at strengthening their digital asset ecosystems and attracting crypto businesses.
Positive changes in crypto regulations are encouraging industry businesses to expand. For instance, leading crypto trading platform Coinbase recently announced plans to hire 1,000 employees in the US.
The Trump administration has also witnessed several lawsuits being dropped against major crypto entities, including Kraken, Coinbase, Gemini, and others. At press time, Bitcoin trades at $87,399, down 0.2% in the past 24 hours.
Featured Image from Unsplash.com, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Aliyu Pokima
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Kentucky Governor Signs Off On ‘Bitcoin Rights’ Bill, Strengthening Crypto Protections
Gemini Crypto Exchange Announces Rewards For XRP Users, Here’s How To Get In
Ethereum Price Falls Below $1900 As Expert Blames Decline On Network Stagnation
Ethereum Monthly RSI At 2018 Market Low — What Happened Last Time?
Ethereum Bulls Disappointed As Recovery Attempt Fails At $2,160 Resistance
Is Burger King Teasing Crypto Launch? Decoding Their X Post
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Bitcoin19 hours agoEl Salvador’s Nayib Bukele Open to White House Visit
-
Altcoin18 hours agoDid XRP Price Just Hit $21K? Live TV Display Error Goes Viral
-
Altcoin12 hours agoPepe Coin Whale Sells 150 Billion Tokens, Price Fall Ahead?
-
Ethereum18 hours agoEthereum Breakdown, Analyst Eyes $1,130–$1,200 Price Target
-
Bitcoin18 hours agoBitcoin Price Could Surge To $95,000 — But Analyst Sounds ‘Bull Trap’ Alarm
-
Market17 hours agoDark Web Criminals Are Selling Binance and Gemini User Data
-
Market13 hours agoGRASS Jumps 30% in a Week, More Gains Ahead?
-
Market12 hours agoONDO Whales Retreat as Price Risks Dropping Below $0.70
✓ Share: