HK Stablecoin Stocks Drop on New Rules, Experts Approve

Stablecoin companies that operate in Hong Kong published two numbers on Friday amid local organizational bouts and wider market correction.

A bright set of securities and commodities Nearly 20 % decreased Friday, according to Google Financing Data. Yunfing Financial Group Decline More than 16 % during the trading session, while Guotai Junan International Holdings slid 11 % and OSL group Decline 10.5 %.

These companies are referred to as “Hong Kong Steplkwin Companies for the concept”, with stock prices driven by the exposure of Stablecoin, nursery, trading or related infrastructure. However, some local experts view the correction as a positive adjustment in the market.

“A healthy correction.” “There are signs that Stablecoin has poured into other financial markets, including the stock market,” Huang told Cointelegraph.

The correction comes amid a broader shrinkage in Hong Kong financial markets. The Hang Seng index closed more than 1 % on Friday, while the Hang Seng Smallcap index fell 1.54 % during the session. The Hang Seng Technology Index lost 1.02 %.

Related to: PYTH brings stock prices in Hong Kong for global access

Health market correction

The decrease in stocks follows Hong Kong’s entry into a six -month transitional period with special rules while moving to the new Stablecoin framework. New regulations also come amid plans to criminalize unlicensed Stablecoin promotion in the region.

Huang is far from the only expert who believes this sale was just the dynamic of the rational market.

“The sales of the” Stablecoin concept “shares are a rational correction in the market after months of excessive enthusiasm in speculation.”

He explained that organizational rigor, including the individual full reserve request, a one -day recovery, and a capital of no less than $ 25 million from Hong Kong ($ 3.18 million), “is a deliberate strategy to determine the priorities of stability and credibility.” He concluded:

“The correction liquidates short -term speculation, allowing strong players mainly to consolidate Hong Kong’s reputation as a world reliable digital assets.”

“The sale of today in” Stablecoin “is a healthy correction after speculative gains,” said Niko Dimchok, head of compliance with the Forensic Medicine Company at Hong Kong, Ambot. According to Demchuk, the high licensing requirements and challenges faced by smaller companies also weighing “market calibration”.

Shukye MA, the chief official of the Hong Kong strategy in the distinctive symbol of assets in the real world, agreed with other experts. He concluded that “this decrease represents a healthy correction in the market driven by taking profits and organizational clarity.”

Related to: Chinese JD.com Records ‘JCOIN’ before the Hong Kong Steplkwin system

Many expect to leave the race

Huang said that with the presence of the new rules, “some institutions that are considering giving Stablecoin may have decided not to continue this process.” He said that the early batch of licensing holders will benefit from the advantages of the first engine, citing the effects of the network and economies. He added:

“For those who are expected to be included in the first batch, they will face an arduous battle, and change cost and benefits analysis. It is also a way to increase the possibility of licensing holders.”

He said that the organizational transition period will witness smaller companies or those looking at Stablecoins to stop the speculation of their efforts or change their judicial states. However, he expects the well -funded players to follow the guidelines and bear the costs of compliance.

Demchuk expects that “the organizational transition period for a period of six months” pays the unification of capital between potential exporters, “which leads to the issuance of only a few licenses. It is also expected to give banks, which act as polites, priority to partnerships with the reconciliation of the license, reinforcing the market towards the largest exporters.

Hong Kong competition and the United States

“In the short term, the size of the dollar -backed Stablecooins in Hong Kong is compared to the dollar -backed Stablecooins,” Huang said. However, MA notes that China has the second largest market share in terms of exports, adding:

“The strict rules benefit from the HKD-Stablecoin exporters because they put them as a major applicable settlement for international circulation.”

Demchuk added that Hong Kong Staplesins “may gain a strategic feature in border payments and Defi by taking advantage of the state of the financial axis and strict regulation. However, he said that” significant growth in Defi or payments is unlikely before 2027, with the development of market adoption and infrastructure development. “

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