Hong Kong Built a Stablecoin Fortress and Only Banks Got in

This story was originally published on HackerNoon at: https://hackernoon.com/hong-kong-built-a-stablecoin-fortress-and-only-banks-got-in. Hong Kong built one of the world’s strictest stablecoin frameworks. The question now is whether strong regulation can coexist with open innovation. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #crypto-regulation, #stablecoins, #hkma, #hong-kong-crypto-regulation, #genius-act, #digital-assets, #crypto-compliance, #hackernoon-top-story, and more. This story was written by: @louistsu. Learn more about this writer by checking @louistsu's about page, and for more stories, please visit hackernoon.com. Hong Kong has built a stablecoin fortress: full reserves, strict custody rules, and strong consumer protections. But only two licences were approved out of 36 applications, raising questions about who can actually afford to participate. The framework may protect users better than many alternatives, yet it could also concentrate the market in the hands of large banks. The real test comes in the next licensing rounds.