Hong Kong Will Ban Retail Investments in Stablecoins Until Next Year

In the spring, the largest crypto exchanges applied for registration in Hong Kong.

However, the Ministry of Finance has announced a ban on retail investments in stablecoins until 2024 in early October.

This was due to the collapse of the Terra ecosystem in 2022, in which regulators were unable to intervene due to lack of restrictions on buying and selling UST and LUNA tokens.

The new legislation aims to protect investors by allowing authorities to analyze the financial state of stablecoin companies.

Once they meet the safety standards, retail investors in Hong Kong will be able to purchase digital currencies with real collateral.

The restrictions are expected to be lifted once all companies comply with the new requirements by 2024.