Hong Kong rules limit stablecoin derivatives trading: DBS CEO

Hong Kong's stablecoin regulatory framework restricts their use for derivatives trading on blockchain networks, according to Sebastian Paredes, CEO of DBS Hong Kong. He noted that recent regulatory requirements would significantly limit stablecoin use in on-chain derivatives. Following the introduction of these new rules on August 1, restrictions were imposed, leading to criticism from various quarters regarding their harshness. DBS, a major bank in the region with significant assets, is shifting focus towards developing stablecoin capabilities rather than engaging in derivatives trading. Despite earlier enthusiasm around stablecoin licenses, the strictness of the regulations has caused concern, especially as firms like HSBC and ICBC reportedly reevaluated their positions amid pressures from Chinese authorities. The entire situation highlights the evolving dynamics of stablecoin trading in Hong Kong's regulatory environment.

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