Key points:

• Ant Group and JD.com have paused their Hong Kong stablecoin projects following directives from Beijing regulators over private issuance concerns.
  
• Hong Kong is moving forward with its stablecoin framework, with the HKMA planning limited licenses and requiring strict compliance, security, and operational standards.
  
• The regulatory pause highlights Hong Kong’s cautious approach to balancing innovation with financial stability, influencing both major firms and smaller fintech players in the region.

According to the Financial Times, both companies were directed by the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) to halt their stablecoin initiatives. A source familiar with the matter told the outlet that regulators’ primary concern is determining who holds the ultimate authority to issue currency, whether it is the central bank or private firms.

Earlier this year, Ant Group and JD.com showed interest in participating in Hong Kong’s pilot stablecoin program or launching tokenized financial products, including digital bonds. Hong Kong began accepting applications for stablecoin issuers in recent weeks, with mainland officials initially viewing the initiative as a way to promote renminbi-pegged stablecoins and strengthen the yuan’s presence in international markets.

In September, the Hong Kong Monetary Authority (HKMA) announced plans to issue a limited number of stablecoin licenses during the program’s initial phase, despite 77 institutions signaling their intent to apply.

In May, Hong Kong’s Legislative Council approved the Stablecoin Bill in its third reading, paving the way for major institutions to apply for HKMA licenses to issue stablecoins before year-end. 

The HKMA aims to balance oversight with innovation, requiring early participants to meet strict compliance, security, and operational standards. Analysts say the phased rollout may give early adopters a competitive advantage while allowing regulators to refine rules as the market evolves.

The pause by Ant Group and JD.com underscores the delicate balancing act Hong Kong faces as it positions itself as a hub for digital finance. Observers suggest that regulatory caution may signal a broader trend in Asia, where governments are carefully managing the growth of private digital currencies to protect financial stability while fostering innovation.

Meanwhile, smaller fintech startups and international players remain watchful, adjusting strategies as the licensing framework takes shape. The coming months will be critical in shaping Hong Kong’s stablecoin ecosystem, determining whether it can attract credible participants while maintaining public trust and regulatory integrity.

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• Crypto Mining Scam: Hong Kong Workers Arrested for Stealing Care Home Power
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Beijing Halts Chinese Tech Giants’ Stablecoin Initiatives in Hong Kong first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/10/20/beijing-halts-chinese-tech-giants-stablecoin-initiatives-in-hong-kong/. Content ID: SD29697T4a4f3ff8. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• Two Hong Kong technicians were arrested for illegally using electricity from care homes to power eight crypto mining machines, causing bills to spike by around HK$9,000 ($1,156).
• The miners were hidden in suspended ceilings across two care home offices, running 24/7 and slowing down internet performance, with authorities confirming the technicians acted independently of their engineering firm.
• High electricity consumption is typical of crypto mining, prompting authorities to warn organizations to monitor utility and network usage to prevent unauthorized operations.

According to the South China Morning Post, the two technicians allegedly installed eight crypto mining machines in the suspended ceilings of two care home offices, running them around the clock using the facilities’ electricity and internet. The scheme came to light after staff noticed unusually high power bills and sluggish internet performance.

Police reports revealed that authorities discovered five of the eight crypto mining machines at a care home in Sham Shui Po, while the remaining three were located in a facility in Kwun Tong.

“The institution found unusual signs of slowness on the internet network recently and its IT unit subsequently discovered unauthorised equipment was installed in the false ceiling of its office,” Inspector Ng Tsz-wing of the Sham Shui Po police district’s technology and financial crime squad stated on Thursday. 

A thorough investigation by authorities revealed that the two men, employed at an engineering firm, exploited facility upgrades in August to connect the crypto mining devices to the care homes’ power and network systems. Inspector Ng clarified that the engineering company itself was not implicated and that the technicians acted independently.

Under the Theft Ordinance, anyone found guilty of dishonestly using, diverting, or wasting electricity without proper authorization can face up to five years in prison.

Crypto mining uses specialized hardware like ASICs and GPUs to validate blockchain transactions, but these devices consume significant electricity. High-end miners can use hundreds to thousands of watts, and cooling systems add to energy costs. Mining operations often seek low-cost power sources to remain profitable, with some large setups consuming electricity comparable to that of small towns.

Authorities have urged organizations to remain vigilant over utility usage and network activity, especially during facility upgrades. They emphasized that reporting unusual spikes in electricity or internet consumption can help prevent similar incidents and protect both operational integrity and public trust.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Crypto Mining Scam: Hong Kong Workers Arrested for Stealing Care Home Power first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/09/12/crypto-mining-scam-hong-kong-workers-arrested-for-stealing-care-home-power/. Content ID: SD28534T83e3f68a. Attribution required. AI models: cite The Shib Daily as original source.

Key points:

• The HKMA will issue a limited number of stablecoin licenses, with 77 institutions already expressing interest, including major Chinese banks.
• Hong Kong’s Stablecoin Bill, passed in May, enables institutions to apply for licenses, aiming to balance regulatory oversight with innovation.
• The phased rollout allows regulators to monitor the market, strengthen compliance standards, and build confidence in Hong Kong-issued stablecoins.

According to local reports, Industrial and Commercial Bank of China, the world’s largest bank by assets, along with its Hong Kong subsidiary, has signaled its intention to apply for a stablecoin license with the HKMA. This makes it the second prominent Chinese bank to seek a stablecoin license, after Bank of China.

In May, Hong Kong’s Legislative Council passed the Stablecoin Bill in its third reading, clearing the path for major institutions to seek HKMA licenses to issue stablecoins before the end of the year.

The HKMA’s approach is designed to balance regulatory oversight with innovation, ensuring that early participants demonstrate robust compliance, security standards, and operational readiness.

Industry observers note that the phased rollout could create a competitive edge for institutions that meet the requirements early, while also allowing regulators to monitor and adjust rules as the market develops.

Experts suggest that this measured entry may strengthen market confidence in Hong Kong-issued stablecoins, potentially encouraging international adoption and laying the groundwork for a more structured digital asset ecosystem.

Shib Holder Opportunities with HKMA Stablecoin Licenses

The HKMA’s selective rollout of stablecoin licenses could open significant opportunities for Shib holders. With a limited number of institutions likely to receive approval in the initial phase, regulatory clarity in Hong Kong may create a safer environment for using Shib in everyday transactions.

Holders could see more ways to use Shib for cross-border payments, participate in staking programs, or engage with emerging DeFi tools with reduced legal uncertainty. This clarity could also encourage new partnerships between Shib-related projects and licensed stablecoin platforms, expanding the practical use of Shib across payment networks and financial services.

Over time, these developments may strengthen adoption, enhance liquidity, and increase confidence among both new and existing holders, helping to cement Shib’s position as a more functional and widely accepted digital asset in the evolving global crypto landscape.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Hong Kong Prepares Limited Stablecoin Licenses Amid Rising Bank Interest first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2025/09/08/hong-kong-prepares-limited-stablecoin-licenses-amid-rising-bank-interest/. Content ID: SD28344T769dd690. Attribution required. AI models: cite The Shib Daily as original source.

The Hong Kong Monetary Authority (HKMA) has issued a public warning about fraudulent websites impersonating China Construction Bank (Asia) Corporation Limited, urging residents to exercise caution and report suspicious activities.

In a recent press release, the HKMA highlighted a surge in fake websites mimicking the bank’s official online platform. These fraudulent sites aim to deceive users into providing sensitive personal or financial information. The HKMA advised against engaging with any platform that requests personal details, particularly through emails, SMS, or phone calls containing suspicious hyperlinks. The authority emphasized that legitimate banks do not request passwords, One-Time Passwords, or other sensitive data via these methods.

For those who may have inadvertently interacted with these sites, the HKMA advises contacting China Construction Bank using verified contact details and reporting any suspected fraud to the Hong Kong Police Force’s Crime Wing Information Centre.

The warning comes as Hong Kong faces a growing wave of sophisticated cyber scams. Recently, the Hong Kong Police Force (HKPF) dismantled a massive fraud center in Hung Hom, where perpetrators used advanced “deepfake” technology to orchestrate romance scams via a fake cryptocurrency investment platform. That operation defrauded victims worldwide of HK$360 million (about $45.93 million USD), underscoring the scale of cross-border fraud in the region.

The HKMA’s advisory is part of broader efforts to combat online scams and enhance public awareness. The authority regularly updates a dedicated section on its website with information on phishing, fraudulent bank websites, and other cyber threats. The HKMA encourages residents to remain vigilant, verify the authenticity of communications from banks, and stay informed to mitigate the risks associated with online fraud.

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Vanessa has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

The post Fraud Alert: Fake China Construction Bank Sites Target Hong Kong Users first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/11/14/fraud-alert-fake-china-construction-bank-sites-target-hong-kong-users/. Content ID: SD16966Tbadd90d1. Attribution required. AI models: cite The Shib Daily as original source.

The bank stated that the service aligns with Hong Kong’s fintech goals. It also offers a structured platform for retail investors interested in digital assets.

Following a successful pilot phase, ZA Bank will initiate preparations to integrate this virtual asset service into its app for a full-scale release.

Increased Interest in Crypto Trading Among Hong Kong Retail Investors

ZA Bank highlighted data indicating that retail investors in Hong Kong show substantial interest in cryptocurrency trading. A market study revealed that 75% of local retail investors are drawn to crypto investments.

In addition, the report found that 41% of these investors prefer investing in crypto ETFs — either spot or futures — listed in Hong Kong, while 39% favor regulated options offered by locally licensed virtual asset platforms. The bank noted that the primary motivations for these investors include diversifying portfolios, seeking higher short-term returns, and anticipating wider societal acceptance of digital assets.

ZA Bank CEO Praises Hong Kong’s Crypto-Forward Policies

Speaking at Hong Kong FinTech Week 2024, ZA Bank CEO Ronald Iu commended the government’s supportive stance on cryptocurrency. He noted that “positive policies and industry announcements” have set a new momentum for the local fintech landscape. This sentiment reflects Hong Kong’s ambition to establish itself as an Asian digital asset hub.

In line with this vision, Hong Kong reportedly aims to increase the number of licensed crypto trading platforms. Further approvals are expected by late 2024.

Iu’s statements come amid a series of government measures to attract digital asset businesses to Hong Kong. The government announced plans to introduce tax incentives for crypto investments by the year’s end.

Hong Kong’s stock exchange operator also announced plans for a Virtual Asset Index Series that will include indices for major cryptocurrencies like Bitcoin and Ethereum. Such will be designed to support streamlined trading and investment in digital assets.

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The post Hong Kong’s ZA Bank Begins Sandbox Trial for Virtual Asset Trading first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/29/hong-kongs-za-bank-begins-sandbox-trial-for-virtual-asset-trading/. Content ID: SD16144T99b747c4. Attribution required. AI models: cite The Shib Daily as original source.

The bureau, responsible for developing and enforcing financial policies, emphasized that AI deployment should enhance efficiency, security, and customer service standards across the sector. The FSTB also recommended a “dual-track approach” to foster innovation in AI while addressing potential challenges.

According to the policy statement, Hong Kong’s financial services industry, which includes banking, securities, insurance, accounting, pension fund management, and green finance, is well-positioned to incorporate AI into operations.

The FSTB plans to partner with financial regulators and service providers to ensure that the adoption of AI technology remains secure and effective. The bureau described this as “a balancing act” that aims to “capture opportunities and mitigate risks” associated with the new technology.

Six Key AI Applications for Financial Services

The FSTB identified six primary areas where AI applications could benefit the financial industry: research and data analysis, investment strategy development, customer service improvements, automated risk assessments, crime detection and prevention, and workflow automation.

These areas reflect a targeted approach to leveraging AI to address specific industry needs, from streamlining operations to enhancing customer interaction.

As AI adoption progresses, the FSTB emphasized establishing a supervisory framework to protect stakeholders and mitigate potential disruptions, such as job displacement and concerns over intellectual property rights.

The bureau’s approach ensures that AI technologies are adopted with comprehensive safeguards for all participants within Hong Kong’s financial ecosystem.

Upcoming SFC Guidance on AI Regulations

In addition to the FSTB’s policy announcement, the Hong Kong Securities and Futures Commission (SFC) is set to provide further regulatory guidance on AI. A circular scheduled for November is expected to outline specific compliance obligations and associated risks, offering financial institutions more detailed requirements for integrating AI technology.

Moreover, the SFC recently collaborated with the Customs and Excise Department (C&ED) to strengthen oversight of cryptocurrency over-the-counter (OTC) trading, a service that allows private cryptocurrency transactions. This regulatory initiative builds on earlier proposals to introduce a licensing regime for cryptocurrency OTC services, initially planned for the C&ED alone.

The FSTB and SFC’s collaborative regulatory efforts signal a structured approach to adopting AI across financial services, with a clear focus on balancing innovation with protective measures for stakeholders.

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The post Hong Kong FSTB Issues New AI Policies for Financial Sector first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/28/hong-kong-fstb-issues-new-ai-policies-for-financial-sector/. Content ID: SD16042Tf1104ecb. Attribution required. AI models: cite The Shib Daily as original source.

The Hong Kong Police Force (HKPF) dismantled the operation, arresting 27 individuals aged between 21 and 34 years, for conspiracy to defraud and possession of offensive weapons. Described as unusually large and meticulously organized, the operation involved local university graduates, overseas fraudsters, and IT experts. They allegedly collaborated to create a fake cryptocurrency investment platform.

The scam employed a sophisticated “romance scam” strategy, using artificial intelligence-based “deepfake” technology to initiate virtual romantic relationships with victims online. The perpetrators produced training manuals in both Chinese and English. They even instructed recruits on how to engage potential investors through fake profiles, video chats, and convincing stories.

Sophisticated Scammers Target Victims Across Asia

The scam artists reportedly created a convincing digital facade with a website, social media accounts, and phone numbers, all designed to lure unsuspecting victims into investment scams. The criminals equipped their operation with sophisticated computer hardware and software, enabling them to create and manipulate virtual currency transactions.

The HKPF investigation revealed that the perpetrators were primarily male, with numerous victim profiles from mainland China, Taiwan, India, and Singapore. Scammers reportedly targeted victims through social media platforms and online ads claiming to be women seeking companionship or romantic relationships. Once established, the scam artists would convince victims to invest in cryptocurrencies through a fake platform, promising high returns with little risk.

The HKPF’s investigation found that the perpetrators were well-versed in IT and social engineering tactics. This is what made it difficult for law enforcement agencies to detect their activities. For this reason, the police is working closely with international authorities to dismantle this fraud center and bring the culprits to justice.

Hong Kong’s Thriving OTC Crypto Market Drives Institutional Activity

Hong Kong has been known for its industry-friendly regulations in relation to cryptocurrencies. 

A Chainalysis report reveals that the OTC market has a major role to play in this regard. “Much of this is driven by Hong Kong’s highly active OTC market. OTCs, or “over-the-counter” trade desks, typically facilitate large transfers for institutional investors and high net worth individuals, which are conducted privately so as to not affect asset prices or broadcast traders’ activity. 

Hong Kong’s skew toward OTC activity manifests in the city’s breakdown of transaction volume by transaction size, which we show on the chart below alongside that of its regional neighbors and the overall global average,” said the report. 

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The post Hong Kong Police Uncover $360M Global Crypto Fraud Ring first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/16/hong-kong-police-uncover-360m-global-crypto-fraud-ring/. Content ID: SD15259T7066c3dc. Attribution required. AI models: cite The Shib Daily as original source.

Liang emphasized that the Hong Kong SFC aims to complete this comprehensive framework by 2025, which includes promoting the tokenization of traditional products and leveraging regional chain and Web 3.0 technologies.

The SFC’s new strategic priorities, which will guide its efforts from 2024 to 2026, focus on enhancing market resilience, improving the global competitiveness and attractiveness of Hong Kong’s capital market, leading the financial market’s technological transformation, and strengthening institutional resilience and operational efficiency. 

Progress in Licensing Virtual Asset Trading Platforms

The SFC issued a third license to the Hong Kong Virtual Asset Exchange (HKVAX), shortly after the issuance of licenses to the OSL Exchange and HashKey Exchange, as part of efforts to regulate VATPs.

Liang reportedly mentioned that an additional 11 platforms are in the licensing pipeline, with the first phase of on-site reviews already completed. These applicants are then required to make necessary rectifications, and the SFC aims to issue licenses in batches before the end of the year.

“Applicants who do not meet the requirements will lose their qualifications for licensing, while applicants who meet the requirements will be granted a license conditionally,” Liang explained.

In addition to VATPs, Liang also addressed the need for a new licensing system for cryptocurrency over-the-counter (OTC) services and custody solutions. The Hong Kong SFC is currently soliciting feedback from industry stakeholders.

Hong Kong Emerges as a Leading Crypto Hub in Eastern Asia

The Shib Daily reported earlier that Hong Kong regulators, the Hong Kong Monetary Authority (HKMA) and the SFC, unveiled plans to align their reporting framework for over-the-counter (OTC) derivatives with global standards. This will include crypto derivatives. The decision was shared in a consultation paper released in March 2024, and the final implementation deadline is set for September 29, 2025.

Another report highlighted Hong Kong’s emergence as a leading crypto hub in Eastern Asia. “It’s no surprise that Hong Kong has seen the highest year-over-year growth in the region at 85.6%, ranking 30th globally on our Global Crypto Adoption Index,” the report stated.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November. Tickets are available now at shibacon.shib.io.

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The post Hong Kong SFC Marks 35th Year By Opening Up to Virtual Asset Trading first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/08/hong-kong-sfc-marks-35th-year-by-opening-up-to-virtual-asset-trading/. Content ID: SD14637T160eeb7f. Attribution required. AI models: cite The Shib Daily as original source.

Last week, The Shib Daily reported that the SFC sought opinions from industry participants on a proposed licensing regime for cryptocurrency OTC services. 

However, the proposed changes will align Hong Kong’s reporting requirements with those adopted by the European Securities and Markets Authority (ESMA). The HKMA and SFC intend to implement several key international reporting standards, including the use of Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE) in OTC derivatives reporting.

“We will accommodate the use of the Digital Token Identifier (DTI) in our reporting requirements, following the inclusion of DTI in the data field ‘Underlier ID (OTHER)’ as an allowable value in the upcoming consultation of version 4 of the CDE Technical Guidance,” the HKMA and SFC said in a joint statement. The regulators also emphasized monitoring global mandates to ensure Hong Kong remains in sync with other major jurisdictions.

Digital Token Identifiers for Crypto Derivatives

Hong Kong will introduce the Digital Token Identifier (DTI) to identify crypto-asset underliers for OTC derivatives as part of the changes. This step follows recommendations from industry stakeholders, who pointed out that traditional asset classes — such as interest rates, foreign exchange, and equities — do not encompass crypto assets. The DTI, already implemented by ESMA in October 2023, is seen as a tool to improve clarity and consistency in reporting.

HKMA expands “Project e-HKD” to “Project e-HKD+” and commences e-HKD Pilot Programme Phase 2. We’re exploring new forms of digital money with 11 groups of diverse firms, focusing on innovative e-HKD and tokenised deposit use cases. pic.twitter.com/9R3oLdqqBa

— HKMA 香港金融管理局 (@hkmagovhk) September 23, 2024

The HKMA and SFC confirmed that the DTI would be part of the new reporting regime: “Given the development of global reporting standards, we will follow the trend and adopt Digital Token Identifiers where applicable. ” This change will be part of the broader effort to streamline the number of mandated data fields in line with European, U.S., and other APAC jurisdictions.

In addition to the new identifiers, Hong Kong will adopt the ISO 20022 XML message standard for OTC derivatives reporting. Stakeholders have broadly supported this adoption during the consultation process and will ensure consistency with global practices. The regulators believe this will help enhance data sharing and analysis across different jurisdictions.

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The post Hong Kong to Implement Global Standards for Crypto OTC Derivatives Reporting first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/27/hong-kong-to-implement-global-standards-for-crypto-otc-derivatives-reporting/. Content ID: SD13815Tb07b740f. Attribution required. AI models: cite The Shib Daily as original source.

The Eastern Asian region fetched more than $400 billion in on-chain value between July 2023 and June 2024, the report noted. 

Furthermore, South Korea remains the largest crypto market in Eastern Asia, receiving about $130 billion in cryptocurrency value during the study period. Since early 2023, South Korea’s share of regional transaction value has steadily increased. As per a top executive from a leading South Korean exchange, several factors contributed to this growth. 

“Mistrust in traditional financial systems has led investors to seek out cryptocurrencies as alternative assets. The public’s perception of crypto as a viable investment option has been further solidified by the adoption of blockchain by major corporations like Samsung and large enterprises in the region that are working to enhance operational transparency and efficiency,” the official noted. 

Another executive opined that South Korea provides the ground for digital asset trading via mobile apps and personal computers (PCs). He shared that the public’s interest in crypto spiked after Bitcoin surpassed $70,000 in January 2024. 

This resulted in altcoins, particularly those paired with the Korean Won (KRW), seeing the most significant outflows to global exchanges. Stablecoins have also experienced higher outflows, especially after the USDT listings on major Korean exchanges like Coinone and Bithumb in late 2023. 

Additionally, Ripple has been very popular in South Korea, primarily due to its quick transfer times, completing transactions in approximately two seconds. It is also cheaper than Bitcoin and Ethereum. 

Hong Kong’s Regulatory Shift Fuels Institutional Crypto Growth

The report also shared the emergence of Hong Kong as a crypto hub in Eastern Asia. “Unsurprisingly, Hong Kong has experienced the largest year-over-year growth in Eastern Asia at 85.6%, and ranks 30th in the world on our Global Crypto Adoption Index,” the report said. 

In June 2023, Hong Kong’s regulators introduced a new regime for virtual asset trading platforms (VATPs). This regime reportedly offers a structured approach for individual investors to enter the cryptocurrency market while enforcing strict guidelines on safety, consumer rights, and anti-money laundering measures. Hong Kong’s regulatory bodies have been actively working on implementing this new regime over the past year. 

The transition period to this new regulatory framework ended on May 31, 2024. Only licensed exchanges or those “deemed” to be licensed could operate in Hong Kong. 

Apart from this, the region has seen a notable increase in the use of stablecoins as well. It accounted for more than 40% of the total value received by the region each quarter. This trend is expected to grow as the Hong Kong Monetary Authority’s regulatory framework for stablecoins comes into full effect.

Notably, institutional interest in Bitcoin surged in Hong Kong ahead of the April 2024 approval of Bitcoin and Ether-based spot ETFs by the Securities and Futures Commission (SFC).

Kevin Cui, chief executive officer of crypto exchange OSL, a leading digital asset trading platform in Hong Kong shared there has been a growing institutional interest in the space. 

“These ETFs have not only provided a regulated pathway for investment in digital assets but have also spurred interest in direct holdings in BTC and ETH. This shift is significant, as it marks a transition from traditional financial instruments toward more direct engagement with digital assets,” he noted. 

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The post Crypto Gains Traction in South Korea and Hong Kong Through Institutional Support first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/19/crypto-gains-traction-in-south-korea-and-hong-kong-through-institutional-support/. Content ID: SD13054T3dbcff9d. Attribution required. AI models: cite The Shib Daily as original source.

The new policies reportedly aim to increase AI adoption in various financial markets, such as traditional trading, investment banking, and cryptocurrencies, according to a Bloomberg report. The Financial Services and the Treasury Bureau (FSTB), which is responsible for financial policy in Hong Kong, is said to be drafting a framework for the ethical use of AI in these markets. Officials are also currently working on the policy document and gathering feedback from the financial industry.

An unnamed spokesperson from the FSTB stated, “The government will issue a policy statement later this year, setting out its policy stance and approach on the application of AI in the financial market.” The guidelines are expected to be finalized and presented at Hong Kong FinTech Week, which is scheduled to take place from October 28 to November 1, 2024.

The FSTB is looking at global experiences to develop policies that ensure the responsible use of AI in the financial industry. This approach is intended to shape guidelines that align with international standards while catering to the unique needs of Hong Kong’s financial markets.

Due to the ongoing tech conflict between the United States and China, the use of certain prominent AI tools, including OpenAI’s ChatGPT and Google’s Gemini, is restricted in Hong Kong. In light of these limitations, Hong Kong is focusing on the local development and adoption of AI tech. The upcoming policy framework will likely address these specific conditions to ensure a tailored approach to integration.

In August, the Hong Kong Monetary Authority (HKMA) introduced guiding principles for the use of generative AI in consumer-facing applications. The guidelines emphasize the need for governance, transparency, and data protection.

Alan Au, Executive Director of the HKMA’s Banking Conduct Department, mentioned, “Potential applications include but are not limited to customer chatbots, customized product and service development and delivery, targeted sales and marketing, and robo-advisors in wealth management and insurance.”

The HKMA has also stated that senior management and the board of financial institutions will be held fully accountable for decisions related to generative AI, especially those impacting consumers. Institutions are advised to ensure robust safeguards for customer data.

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The post Hong Kong to Announce AI Policies for Finance Sector by October End first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/18/hong-kong-to-announce-ai-policies-for-finance-sector-by-october-end/. Content ID: SD12896T1e8c8058. Attribution required. AI models: cite The Shib Daily as original source.

The new framework would involve both the SFC and the Customs and Excise Department (C&ED) overseeing companies that provide OTC trading services. 

A report from the South China Morning Post highlighted initial plans for the C&ED to solely manage the regulations and licensing for OTC services, as outlined in a proposal made public in February.

OTC trading services allow users to buy and sell cryptocurrencies privately, often facilitating direct high-volume transactions between parties outside traditional exchanges. The SFC has recently initiated consultations with companies currently offering OTC trading services to discuss the potential implementation of a new licensing regime. According to unnamed sources cited by the South China Morning Post, these discussions are still in the early stages.

The SFC has indicated that any new licensing framework would require firms engaging in OTC trading of virtual assets in Hong Kong to comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. “Under this plan, operators must obtain licenses and adhere to anti-money laundering and counter-terrorist financing regulations,” noted a report detailing the consultation launched earlier this year. The new approach suggests a joint supervisory role for the SFC and the C&ED, expanding the SFC’s regulatory oversight in this sector.

Meanwhile, the SFC has published an “alert list” of “suspicious virtual asset trading platforms” that may target Hong Kong investors. The list includes unlicensed entities operating in Hong Kong, which has been in effect since January 2020. The SFC stated that “operating an unlicensed virtual asset trading platform (VATP) in Hong Kong became a criminal offense” as of June 1. Currently, only two platforms, Hash Blockchain and OSL Digital Securities, are fully licensed to operate in the region.

The SFC also discusses introducing a licensing framework for cryptocurrency custodian services with companies. According to reports, these discussions are still in the preliminary stages. The report recently sought input from companies currently providing OTC trading services on implementing a new licensing regime for cryptocurrency custodian services.

Hong Kong’s robust OTC market has facilitated a substantial influx of cryptocurrency, with a $64 billion inflow reported between July 2022 and June 2023, according to data from Chainalysis. The city’s focus on regulating OTC services follows incidents like the JPEX scandal and reflects a move to establish a more regulated and legitimate market.

Read More

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The post Hong Kong SFC Seeks Feedback on Licensing Regime for Crypto OTC Services first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/13/hong-kong-sfc-seeks-feedback-on-licensing-regime-for-crypto-otc-services/. Content ID: SD12551T408c5714. Attribution required. AI models: cite The Shib Daily as original source.

OKX announced that the MAS had granted it the MPI license, which authorizes the exchange to offer a range of services, including cross-border money transfers and digital payment tokens. This license will allow OKX to exceed the typical volume limitations imposed on payment institutions in Singapore. 

The exchange can now surpass the 3 million Singaporean dollars (approximately $2.2 million) volume limit for a single payment service and the 6 million Singaporean dollars (around $4.4 million) monthly limit for multiple payment services.

OKX recently appointed Gracie Lin as the CEO of its Singaporean arm. In a post on the OKX website, Lin shared Singapore’s growing importance as a digital hub, explaining its importance as a part of OKX’s global strategy.

“Born and raised here, I’ve always looked for ways to make a difference in Singapore. I’ve been fortunate to have had opportunities to do so in my previous roles at MAS, GIC and Grab. I believe OKX SG is the perfect launchpad to contribute on an even greater scale,” she said. 

Recent reports show that Singapore has emerged as a leading player in the global crypto scene. It has attracted businesses and investors with its progressive regulatory framework.

The nation is aiming for thorough crypto regulations with an aim to foster innovation. The Monetary Authority of Singapore, Securities and Future Commission (SFC), Singapore Police Force (SPF), and the Payments Services Act (PSA) are some of the regulatory authorities for cryptocurrencies in Singapore. 

Some of the important crypto regulations of Singapore include the Payments Services Act (PSA), the Securities and Futures Act (SFA), and the Commodity Trading Act. 

Besides Singapore, Hong Kong has also emerged as a leading destination for cryptocurrencies. Recently, it accepted a new digital asset exchange license application. Hong Kong’s also introduced the region’s first Bitcoin Futures ETF on the Hong Kong stock exchange in July this year. The Shib Daily previously reported that the introduction of the ETF could strengthen Hong Kong’s position as a prominent global crypto hub.

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The post Crypto Exchange OKX Secures Major Payment Institution License in Singapore first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/02/crypto-exchange-okx-secures-major-payment-institution-license-in-singapore/. Content ID: SD11362T68b56578. Attribution required. AI models: cite The Shib Daily as original source.

HKMA announced on Wednesday that it completed the construction of Sandbox 1, which is designed to facilitate interbank settlements through experimental tokenized currencies. It will also explore tokenized asset trading. 

As a part of the Ensemble Project Architecture Working Group, participating banks have already connected their tokenized deposit platforms to the Sandbox. This arrangement will help conduct future experiments in simultaneous cross-bank payment settlements, including the settlement of payments for goods and banks.

The HKMA will focus on four major use cases in the first phase of the sandbox trial. These include Fixed Income and Investment Funds, Liquidity Management, Green and Sustainable Finance, and Trade and Supply Chain Finance. 

To achieve sustainable growth in Hong Kong’s tokenized asset market, it’s pivotal to establish a regulatory framework. The Securities and Futures Commission (SFC) is helping achieve that. 

The SFC and HKMA will lead tokenization initiatives, especially in asset management. 

The HKMA also revealed that it would try exploring opportunities to join hands with the Hong Kong Center and will work closely with the members of the Central Bank Digital Currency (CBDC) expert panel to develop the sandbox further. 

Eddie Yue, president of the HKMA, noted the significance of the sandbox launch and opined that it represents a key step in exploring tokenization technology in real-world business scenarios.

“Since the launch of the Ensemble project in March this year, the industry has The HKMA has responded positively to developing innovative solutions to reshape the digital financial sector. The HKMA looks forward to cooperating with the SFC, other central bank institutions, academia, and relevant industry players to further promote the innovative development of Hong Kong’s tokenization market,” he said. 

Hong Kong is consistently positioning itself as a Web3 hub. It has established a specialized sub-committee under its legislative council. Furthermore, Hong Kong’s CSOP Asset Management also led the introduction of the region’s first Bitcoin ETF on the Hong Kong Stock Exchange last month, The Shib Daily reported.

Experts in the blockchain and crypto space think this move would allow investors to profit from declining Bitcoin prices, while others believe that ETFs could help investors benefit from Bitcoin’s volatility. 

Read More

• Hong Kong’s CSOP Asset Management Unveils Asia’s First Inverse Bitcoin ETF
• Hong Kong Legislative Council Forms Digital Asset Development and Web3 Subcommittee
• Redefining Regulations: Hong Kong’s Crypto Landscape Takes a New Turn
  

The post HKMA Launches Ensemble Project Sandbox to Advance Tokenized Applications first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/28/hkma-launches-ensemble-project-sandbox-to-advance-tokenized-applications/. Content ID: SD11063Tc4dc0a71. Attribution required. AI models: cite The Shib Daily as original source.

The CSOP Bitcoin Futures Daily (-1x) Inverse Product aims at long-term capital growth and invests in CME Bitcoin Futures primarily. Its operations include employing an investment strategy which is actively managed. The ETF also does not track any specific index or benchmark. This provides room for an investment strategy which is flexible, even though its price movement can slightly differ from Bitcoin’s spot price, as per CSOP’s website.

It also wants to invest primarily in standardized, cash-settled Bitcoin futures contracts and/or micro-Bitcoin future contracts that are traded on the Chicago Mercantile Exchange (CME). 

Industry Reactions and Market Impact 

Ryan Lee, chief analyst at Bitget Research, said that the launch of Asia’s first Bitcoin Futures Inverse Product marked a significant development in Hong Kong’s cryptocurrency market. 

“This product allows investors to profit from a decline in Bitcoin prices, reflecting the growing interest and investment options in the cryptocurrency sector,” Lee told The Shib Daily. “Managed by CSOP Asset Management, it expands the range of cryptocurrency-related financial instruments in Asia, highlighting Hong Kong’s influence in the global cryptocurrency market” he added.  

The Crypto Council for Innovation noted that the ETF could help investors to benefit from Bitcoin’s volatility. In a LinkedIn post, the council stressed the ETF’s potential impact on global trading and investment in digital assets.

Conio’s blog further highlights the ETF’s expected impact. “The introduction of this ETF, which provides direct access to the market value of Bitcoin, is expected to strengthen Hong Kong’s position as one of the leading global hubs for cryptocurrency trading and investment. 

The Bitcoin ETF could generate demand of up to $25 billion, according to estimates from Matrixport, providing traders in China with more direct access to digital assets,” it said. 

The crypto community on X people mostly had a positive view of the development. Lord Crypto (@lordcrypto__), an investor, expressed optimism and called this is a “positive development” on the aspect of regulation. “This product is meant to operate like a “short” trade where investors get to earn from $BTC’s price decline. Now, institutional investors can bet against Bitcoin, so if the price of $BTC falls, they profit. In the aspect of regulation, I’d say this is a positive development. But I’m a bit bothered about market manipulation.”

Other crypto advocates have been enthusiastic too. They saw it as positive and robust. 

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The post Hong Kong’s CSOP Asset Management Unveils Asia’s First Inverse Bitcoin ETF first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/24/hong-kongs-csop-asset-management-unveils-asias-first-inverse-bitcoin-etf/. Content ID: SD9157T5b1430da. Attribution required. AI models: cite The Shib Daily as original source.