Hong Kong's financial regulatory sector is about to undergo significant changes, with the "Stablecoin Regulation" officially coming into effect on August 1. This initiative marks a key step for Hong Kong in the regulation of encryption currencies, having a profound impact on market participants.

The new regulations clearly include the issuance and circulation of stablecoins (such as USDT and USDC) within the scope of regulation. It is worth noting that platforms without a Hong Kong license will be prohibited from selling stablecoins to retail investors, otherwise they will face legal sanctions. Although over-the-counter (OTC) trading is not yet mandated to be regulated, the trend of regulation is becoming increasingly apparent.

Before the new regulations take effect, cryptocurrency trading in Hong Kong remains relatively relaxed. A reporter's field investigation found that the current fee for the ERC20 channel is about 80 HKD, while the fee for the TRC20 channel is only 20 HKD (when the transaction amount is below 10,000 HKD). OTC traders indicated that since it is currently classified as an over-the-counter business, there are no mandatory licensing requirements, and the exchange of stablecoins such as USDT and USDC is still ongoing.

For ordinary users, it is still possible to exchange stablecoins through low-cost channels such as OTC or TRC in the short term, but it is important to carefully choose legal and compliant traders. However, those engaging in over-the-counter business for stablecoins should closely monitor the licensing process of the Hong Kong Monetary Authority to prepare for potential regulatory changes in the future.

With the implementation of the new regulations, compliant exchanges such as HashKey and OSL may become the main channels for stablecoin exchanges. To avoid legal issues, it is strongly recommended that users refrain from trading stablecoins through unlicensed platforms.

The introduction of the "Stablecoin Regulations" reflects the global trend of tightening cryptocurrency regulation, while also opening up new avenues for compliant development. For ordinary users, the most significant change after August 1 is the need to confirm whether the platform holds a legal license when buying and selling USDT and USDC. For relevant practitioners, it is necessary to promptly adjust strategies, considering applying for licenses or business transformation.

Hong Kong's recent regulatory measures will undoubtedly reshape the local encryption currency market landscape, potentially forcing some small and medium-sized trading platforms to withdraw. However, in the long run, it will help establish a more transparent and secure trading environment, promoting healthy industry development. Market participants should closely monitor policy trends and adjust their strategies accordingly to respond to the challenges and opportunities brought by this significant transformation.