TechFlow news, August 9: According to Caixin, visits to multiple currency exchange shops operating cryptocurrency businesses in Hong Kong's Admiralty and Tsim Sha Tsui revealed that some exchanges have suspended USDT and USDC conversions with fiat currencies, while a few have even closed down. However, although certain exchanges no longer openly quote prices for stablecoin exchanges, private inquiries and transactions are still possible.
In response, the Hong Kong Monetary Authority stated that the primary purpose of formulating the Stablecoin Ordinance is to protect stablecoin holders by regulating the issuance and sale (i.e., "offer for sale" under the ordinance) of fiat-backed stablecoins. Most Hong Kong money changers hold Money Service Operator (MSO) licenses issued by Hong Kong Customs, which do not fall within the scope of "authorized providers." Currently, over-the-counter virtual asset trading platforms do not qualify as "authorized providers" under the Stablecoin Ordinance and therefore cannot offer stablecoins to retail or professional investors, regardless of whether such stablecoins are regulated. Whether an individual OTC virtual asset institution’s operations involve offering stablecoins depends on its specific business arrangements and circumstances and cannot be generalized.
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