Stabelcoin companies working in Hong Kong on Friday posted double -digit losses amid local regulatory changes and a comprehensive market reform.
Bright Smart Securities and Commodities Group Nearly 20% fell According to Google Finance Data, on Friday. Unafeng Financial Group Dropped More than 16% during the trading session, while guti junon international holdings Decline 11% and OSL groups rejected 10.5%.
These companies are referred to as “Hong Kong Stabecrim-Concept Companies”, with share prices coming into contact with stabeloin release, detention, business, or related infrastructure. Nevertheless, some local experts see reforms as a positive market adjustment.
This is “a healthy reform”, Alan Huang said, a senior Stabelcoin Policy Researcher at the University of Science and Technology, University of Hong Kong. “There are indications that Stabelcoin frenzy has spread to other financial markets, including equity markets,” Huang told Cointelgf.
Hong Kong’s financial markets improve amid widespread recession. The Hang Seng index closed more than 1% on Friday, while the Hang Seng Smallcap index fell 1.54% during the session. Hang Seng Tech Index lost 1.02%.
Connected: Pyth Network brings Hong Kong Stock Prices for Global Access
A healthy market improvement
The decline in shares follows Hong Kong’s entry into a six -month transition period with special rules as it infection in its new stabeloin framework. The area also includes new rules between a plan to criminalize Stabelcoin promotion in this area.
Huang is away from the only expert who believes that this sale was just a sensible market dynamic.
Ju Han, director of the Liquid Fund in the Hong Kong-Lishens Exchange ish group, said, “SAIL-off is a rational market reform in Stabechoin Concept”, a rational market reform after months of speculative over-abusians. ”
He explained that one-to-one full reserve, one-day redemption and a minimum capital requirement of 25 million Hong Kong dollars ($ 3.18 million), “is a deliberate strategy to prioritize the regulator hardness,” systemic stability and reliability. ” He concluded:
“Improvement filters short -term speculation, which allows fundamentally strong players to anchor Hong Kong as a reliable digital asset hub globally.”
Nico Demchuk, head of compliance with Hong Kong operations in the Crypto Forensic firm, said, “Today’s Stabcoin Concept” shares are likely to have a healthy improvement after betting benefits. ” According to Demchuk, high licensing requirements and challenges faced by small firms were also weighed on “market renovation”.
Shuki MA, Hong Kong -based chief strategy officer agreed with other experts, in the real -world property Tokanization Company Plum. He concluded that “this drop represents a healthy market reform run by the drop and regulator clarity.”
Connected: JD.com of China registers ‘JCOIN’ ahead of Hong Kong Stabecoin rule
Many people expected to leave the race
Huang said that, with the new rules, “Some institutes who consider some institutions may decide not to continue with this process.” He said that the initial batch of license holders benefited from the first-mower advantage, citing network effects and economies of the scale. He said:
“For those who do not expect to join the first batch, they will face a tough fight, changing their cost-benefit analysis. This is a way to increase this possibility that license holders will get business success.”
The MA stated that the regulatory transition period will see small companies or those who are looking into stabechoin for speculation that prevent their efforts or switch to courts. Nevertheless, he expects well -funded players to follow guidelines and tolerate compliance costs.
Demchuk similarly expects a six -month regulatory transition period “to drive capital consolidation between stabelcoin issuers”, allowing only a few licenses to be issued. He also hopes that banks, to act as Custodians, to prioritize the partnership with a license leading, to shape the market again towards large issuers.
Hong Kong and US Stabecrim competition
Huang said that “in the short term, it is unlikely that the volume of Hong Kong dollars-supported stabecines will be comparable with dollar-supported stabblecin.” Nevertheless, MA states that China has the second largest market share in terms of export, adding:
“Strict rules benefit HKD-stabechoin issuers as it determines them as the main providers of Stabeloin, a viable settlement for international trade.”
Damchuk said that Hong Kong Stabechoin “can gain a strategic edge in cross -border payments and DEFIs by taking advantage of its financial hub status and strict regulation. Still, he said, he said,” There is no possibility of “DEFI or payment significant amount of payment before 2027, as the market adopts and the infrastructure develops.”
https://www.youtube.com/watch?v=ry9mi57pbjs
magazine: Hong Kong Stabelcoin Mania, Pokémon on Solana: Asia Express down
