‘Drawn a concrete red line’
Hong Kong-listed companies with cryptocurrency connections saw sharp declines at the end of October after the People’s Bank of China signaled a crackdown on virtual currencies and raised fresh concerns about stablecoins, reported Reuters. The regulator’s unusually direct warning, aimed at curbing speculation and illegal activity, rattled investors who had been betting on Hong Kong’s efforts to become a regional hub for digital assets.
In a statement, the PBOC warned of a “resurgence in crypto speculation” and pledged to clamp down on illegal conduct tied to stablecoins. It also highlighted a key compliance problem, noting that some stablecoins failed to meet customer identification and anti-money-laundering requirements. The…
