HashKey Group CEO: China Will Return to Crypto Through Stablecoins
The head of HashKey stated that currently there is a frenzy around stablecoins in Hong Kong, but Chinese regulators remain highly cautious. The executive sees a major gap between the market enthusiasm for crypto assets and the regulatory reality. According to Xiao Feng, the main role of stablecoins is to serve as an intermediate medium for trading volatile crypto assets.
Mainland China is gradually returning to the crypto world under the pressure of currency competition, and this process begins with stablecoins, said Xiao Feng. China will focus on tokenized real-world assets (RWA), and eventually, authorities may even accept Bitcoin, suggested the "father of China's blockchain."
The HashKey Group CEO emphasized that Hong Kong authorities are paying close attention to anti-money laundering (AML) rules, as the special administrative region of China aims to uphold its status as a key financial center. According to Xiao Feng, blockchain can outperform traditional systems in AML efforts, as all transactions are transparently traceable on-chain.
"Hong Kong has the opportunity to become an international financial center. It operates under common law within the framework of 'One Country, Two Systems.' Hong Kong acts as a bridge between China and the rest of the world. Its destiny is to become the Asian Wall Street. In contrast, Singapore functions like the Asian Switzerland. Their financial strategies are completely different," Xiao Feng explained.
As of August 1, Hong Kong authorities have toughened penalties for promoting stablecoins without a government license. Offenders face a fine of 50,000 HKD (~$6,300) and up to six months in prison. Previously, the Hong Kong Monetary Authority (HKMA) warned that it will issue licenses only to a limited number of stablecoin issuers.
See also: "Bitcoin Price Today: Falls to $115.5K Amid Tariff Fears"
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