Cryptocurrency company shares in Hong Kong have surged as investors remain optimistic about the impending licensing system for stablecoin issuers.
Stock Market and Company Achievements
Shares of brokerage firm Guotai Junan International rose by 28%, according to Yahoo Finance. Shares of licensed cryptocurrency exchange OSL appreciated by 8%, while Dmall Inc. and Victory Securities saw gains of 10% and 33%, respectively. The rising quotes are attributed to the companies' recent successes. Guotai Junan and Victory Securities have received regulatory approval to trade crypto assets, while OSL is one of the platforms with a retail license. Dmall is preparing to apply for stablecoin issuance and is already purchasing Bitcoin through the HashKey exchange.
Anticipating New Stablecoin Rules
Investor interest is fueled by the imminent implementation of rules for stablecoins set for August 1. The new regime will require issuers to obtain a license from the Hong Kong Monetary Authority. According to Financial Services Minister Christopher Hui, authorities may only issue a few such permits this year.
Experts' Opinions on Regulation
IDA co-founder Sean Lee described the regulation in Hong Kong as 'very progressive.' He noted that it opens up more avenues to international markets by allowing the issuance of multi-currency stablecoins. However, Lee pointed out the high barriers to market entry. In his view, Hong Kong focuses on B2B applications rather than retail users, partly due to low public awareness of stablecoins and an already developed domestic digital payment system.
The rise in cryptocurrency company shares in Hong Kong reflects growing interest in stablecoins and anticipations of significant regulatory changes. The expected new rules could impact both the market and the companies involved in the crypto industry.