Stablecoins

Implications of Hong Kong's Stablecoin Sandbox

Saturday. August 17 at 1:30 AM

1 min. read

Hong Kong regulators have initiated a collaborative effort with the private sector to focus on stablecoins, sparking discussions on the potential impact on coins like Tether's USDT and Circle's USD Coin. The Hong Kong Monetary Authority (HKMA) recently unveiled the first five participants in the stablecoin issuer sandbox, including big names like Standard Chartered Bank and Animoca Brands. Participants will test their stablecoin models and work with HKMA on compliance. Jingdong Coinlink Technology plans to launch a stablecoin pegged to the Hong Kong dollar. Despite the advantages of stablecoins like 24/7 trading, mainstream adoption remains limited due to regulatory uncertainties. To address this, HKMA is pushing for stablecoin regulations within the sandbox, aiming for full asset reserves and compliance with AML and KYC requirements. The future of stablecoins in Hong Kong could impact global finance significantly, with potential for cross-border trade and investment scenarios.

More news 🗞️

WazirX Freezes $3M to Aid Recovery from $230M Hack

Saturday. January 18 at 7:00 AM

Indian cryptocurrency platform WazirX has taken steps to recover funds stolen during a $230 million hack in July 2024. By freezing $3 million in USDT, the exchange aims to safeguard user funds and rebuild trust. Co-founder Nischal Shetty emphasized the commitment to recovering stolen funds and maximizing recoveries. WazirX has implemented measures such as restructuring and plans for a decentralized exchange to enhance security. The broader crypto industry has shown support, with initiatives from CoinDCX and CoinSwitch to assist affected users. CoinDCX expressed interest in acquiring WazirX, while CoinSwitch launched a $70 million recovery program. Additionally, India is cracking down on crypto scams, collaborating with Google and Meta to combat losses. Tether, facing backlash, seeks to recover its investment after ending a partnership with Swan Bitcoin. El Salvador's regulatory clarity attracts Tether to establish its global headquarters, embracing AI artistry to enhance its brand identity.

Stablecoins

Google Removes Huione App from Play Store Amid Money Laundering Allegations

Friday. January 17 at 9:00 AM

Huione Guarantee, a Telegram-based marketplace known for its use by criminal organizations in Southeast Asia, had its mobile app removed from the Google Play store due to increased activity. Described as the largest online illicit marketplace by Elliptic, Huione Guarantee saw a 51% rise in monthly inflows following the launch of its USD stablecoin, USDH. Transactions on the platform reached $24 billion, with over 900,000 users reported. The platform, previously linked to money laundering and cyber scams, introduced various crypto products and a messaging app. Despite being available on Apple's App Store, Huione's applications were delisted from Google Play. The growth of Huione has been attributed to the USDH stablecoin launch, which followed Tether freezing one of its accounts. Elliptic's findings led to the platform rebranding as Haowang Guarantee, highlighting its role in facilitating cyber scams in Southeast Asia.

Stablecoins

Innovative Funding for 1Money's Stablecoin Payments Network

Friday. January 17 at 5:00 AM

Layer-1 stablecoin payments network 1Money has secured over $20 million in seed funding to enhance its digital payments infrastructure. The funding round involved more than 24 venture capital firms, including F-Prime Capital, Galaxy Ventures, and KuCoin Ventures. 1Money focuses on stablecoin payments through a unique Byzantine consistent broadcast design. CEO Brian Shroder views stablecoins as pivotal in modernizing the global financial system. The network aims to provide instant transactions, fixed costs, and support for multiple stablecoins, simplifying transaction fees for users. Centralized stablecoins like Tether and USD Coin dominate the $214 billion stablecoin market. Fintech giants like PayPal and Visa are eyeing the stablecoin sector for growth opportunities. Visa's Cuy Sheffield anticipates the rise of stablecoin-linked cards in 2025 to revolutionize global payment systems.

Stablecoins

Legal Battle Between Tether and Swan Bitcoin

Wednesday. January 15 at 4:00 PM

Stablecoin issuer Tether has initiated legal action against Swan Bitcoin, alleging significant breaches in their agreements. Tether, along with co-claimant 2040 Energy, confirmed the lawsuit against Swan Bitcoin. Tether claimed to have acted in good faith throughout their relationship with Swan, while accusing Swan of reckless behavior resulting in breaches of agreements. The case, filed in the High Court of England and Wales, marks an escalation in the ongoing legal dispute between the two companies. Swan and Tether established 2040 Energy as a joint Bitcoin mining venture, with allegations of former employees stealing proprietary information to form a rival company. Swan accused Tether of facilitating a hostile takeover of its mining operations. Tether denied any wrongdoing, citing contractual rights. Swan Bitcoin also filed a lawsuit against its law firm, Gibson, Dunn & Crutcher, for malpractice.

Stablecoins