In today's turbulent financial market, the Hong Kong Treasury Bureau recently issued an important regulation prohibiting retail investors from buying and selling stablecoins, and requiring licensed exchanges not to issue income products. This move aims to protect the rights and interests of investors and maintain market stability and transparency, which has aroused widespread attention and discussion. Let's take a closer look at the impact of this new regulation on Hong Kong's financial market.

The new regulations issued by the Hong Kong Treasury Bureau this time clarify the ban on retail investors buying and selling stablecoins and the restrictions on licensed exchanges issuing income products. This move aims to regulate market behavior, reduce investment risks, and protect the legitimate rights and interests of investors. Behind this is a warning against the chaos in the financial market, as well as protection and care for investors. In this era of information explosion, investors often face the challenge of information asymmetry and are easily influenced by false news and make wrong investment decisions. This move by the Hong Kong Treasury Bureau undoubtedly provides investors with more protection and guidance in the investment process.

The ban on retail investors buying and selling stablecoins can be interpreted from multiple angles. First of all, the trading of stablecoins is relatively stable, but there are also certain risks. Retail investors often lack professional investment knowledge and experience, and are prone to make blind transactions when the market fluctuates, resulting in investment losses. Therefore, prohibiting retail investors from buying and selling stablecoins will help reduce market volatility, reduce investment risks, and protect the interests of investors. Secondly, this move is also conducive to regulating market order, reducing the possibility of market manipulation and insider trading, and maintaining market fairness and transparency. As an international financial center, Hong Kong needs a healthy and stable financial market environment, and the introduction of this new regulation is undoubtedly an important step towards this goal.

On the other hand, the restriction on licensed exchanges to issue income products is also to protect the interests of investors. Income products often have certain risks, especially for ordinary investors, it is difficult to accurately assess the risks and returns of these products. The restriction on licensed exchanges to issue income products can effectively avoid investment losses caused by blindly following the trend. This move will also help to improve the transparency and standardization of the market and avoid chaos and confusion in the market. When choosing investment products, investors should analyze rationally and choose carefully, and the implementation of this new regulation will undoubtedly remind investors to pay attention to risks and protect their legitimate rights and interests.

In general, the new regulations issued by the Hong Kong Treasury Bureau this time are to protect the rights and interests of investors and maintain market stability and transparency. The introduction of this measure not only reflects the regulatory authorities' attention to and supervision of the market, but also reminds investors to invest rationally and avoid blindly following the trend and speculative behavior. In the tide of the financial market, only by staying calm and investing rationally can we obtain more stable returns from our investments. It is hoped that the Hong Kong financial market can move towards a healthier and more stable development path under the guidance of the regulatory authorities.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120Btc.com) News: JPEX's conspiracy to defraud has attracted attention. So far, 2,528 victims have reported the case, and the amount involved has exceeded 1.4 billion yuan. Hong Kong Financial Services and Treasury Secretary Paul Chan said today during an interview with the Investor and Financial Education Committee that the incident reflects the risks of unregulated platforms and the importance of supervision.

Paul Chan pointed out that investing in unregulated platforms is risky. Since these trading platforms lack transparency and may not operate stably, if investors have disputes with the platform, they may have nowhere to complain. If the platform goes bankrupt, stops operating, defrauds, defaults or even gets stolen, investors are likely to lose all the assets deposited on the platform.

Still open to financial innovation

In addition, Xu Zhengyu said that as an international financial center, Hong Kong has an open and compatible attitude towards financial technology innovation. The technological elements involved in virtual assets, such as blockchain and distributed ledger technology, are beneficial to the operation and circulation of the financial system, and are also beneficial to the longer-term development of Web3.0 and the metaverse in the future. Therefore, it is necessary to control the market and risks, and at the same time hope to explore related technological elements to promote the further development of Hong Kong's financial technology.

However, Xu Zhengyu admitted that virtual assets always have extremely high anonymity. Criminals may use virtual assets to launder money or raise funds for terrorist activities. Therefore, moderate and appropriate supervision is required while developing.

Retail trading of stablecoins is not allowed for the time being

In the past, virtual asset trading platforms usually used stablecoins such as USDT as trading media. Xu Zhengyu said that the relevant currencies in the market would be supported by US dollars or gold to support their value. The goal is to stabilize prices, but stablecoins have experienced price fluctuations or even collapses in the past.

In Xu Zhengyu's view, the reserve management of stablecoin issuers will affect price stability and investors' rights to redeem legal tender. Taking these factors into consideration, before Hong Kong formally regulates stablecoins, retail trading will not be allowed for the time being.

Pledge services are also not allowed

As for the launch of diversified investment products on some trading platforms, including pledge, income, deposits, derivative trading and other services, Huang Lexin, Director of the Licensing Division of the Intermediary Institutions Department of the Hong Kong Securities and Futures Commission and Head of the Financial Technology Group, believes that the platform needs to be "relatively neutral" and to prevent conflicts of interest. Currently, the SFC-licensed virtual asset trading platforms are not allowed to provide the above-mentioned trading services.

Huang Lexin said that the current licensed platforms only allow retail investors to buy and sell Bitcoin (BTC) and Ethereum (ETH). Under the license requirements, the platform needs to submit a report to the SFC for the addition of new currencies, and can only be bought and sold after approval.

Hong Kong Securities and Futures Commission reiterates strict requirements for license application

Huang Lexin mentioned that the Hong Kong Securities and Futures Commission has strict requirements for approving virtual asset platform license applications. Under the new system, virtual asset trading platforms, like traditional financial institutions, must comply with a number of regulatory requirements, including financial stability, the right persons for responsible persons and directors, requiring the platform to properly keep customer assets, know its customers, and also have regulations to combat money laundering, prevent market manipulation, avoid conflicts of interest, and focus on network security.

The Hong Kong Securities and Futures Commission reminded that trading platforms need to assess customers' knowledge and risk tolerance of virtual assets, and also need to refer to customers' financial and personal conditions to set investment limits for each customer. At the same time, the platform is required to conduct reasonable due diligence before including virtual assets for retail investors to buy and sell, and to disclose sufficient information to investors.

Huang Lexin emphasized that virtual assets are a very high-risk product, not everyone is suitable for buying and selling, investors should consider their own ability to bear risks, do enough homework, and do not follow the trend of speculation.