Hong Kong's Two Shocking Cryptocurrency Developments🔥

One is "closing," and the other is "opening."
Looking at them together, Hong Kong's attitude has become clearer than ever.
First: Hong Kong "delisting #USDT "? The truth is—it's about clearing unlicensed channels.
Recently, many people have said:
Hong Kong has delisted USDT
Stablecoins are being banned
This statement is not accurate.
A more precise explanation is:
👉 Unlicensed USDT exchange channels are being systematically cleaned up.
👉 USDT itself has not been banned.
What is the background?
On August 1 this year, Hong Kong's stablecoin regulatory ordinance officially took effect.
The new regulation clearly states:
Any involvement in stablecoin exchange / custody / trading
Requires holding a dedicated license for stablecoins or virtual assets.
And the problem is—
In the past, many street exchange shops in Wan Chai and Tsim Sha Tsui
operated under traditional currency exchange licenses,
which are no longer applicable under the new regulation for USDT.
The result is:
Non-compliant → Closed
Those that don't close → Go underground
Continue operating openly → Directly illegal
This is not a sudden policy shift,
but a "clearance operation" after the regulation is truly enforced.
To emphasize once again:
❌ Hong Kong has not banned USDT
❌ Stablecoins have not been outright banned
✅ The cleanup targets unlicensed platforms
The USDT issuers have already submitted license applications to Hong Kong,
currently under review and not yet approved.
The suspicious list published by the Securities and Futures Commission
targets unlicensed institutions,
not the stablecoins themselves.
In Hong Kong, can USDT still be used?
Yes, but only through compliant channels: licensed platforms.
Street-side private exchanges and unlicensed platform transactions
are clearly crossing the regulatory red line.
More importantly:
👉 Hong Kong and Mainland China have already achieved real-time sharing of stablecoin transaction data.
Large transactions may trigger
joint investigations between the two regions.
What does this mean?
👉 Stablecoins are not excluded from the financial system,
👉 but are officially incorporated into cross-border financial regulation frameworks.
Second: Hong Kong allows insurance companies to invest in cryptocurrencies‼️ (Major)
If the first development is about "tightening borders,"
then the second is a true institutional opening.
What happened?
Hong Kong's insurance regulatory authorities are pushing for rule revisions:
👉 Allow insurance companies to invest in cryptocurrencies, stablecoins, and related digital financial infrastructure.
Timeline:
Public consultation from February to April next year
Followed by submission to the Legislative Council
Once approved:
👉 Hong Kong will become the first in Asia
👉 to allow insurance funds to compliant allocate to crypto assets.
Why is this important?
Because—
Insurance funds = the most typical long-term capital + prudent capital.
Their entry means:
👉 Crypto assets are beginning to enter the core of the traditional financial system
👉 No longer just a small circle of high-risk players.
With such volatility, aren't insurance companies afraid of losses?
Regulators have already preemptively set safety thresholds.
The current disclosed framework is:
Crypto assets → Highest risk level
100% risk capital requirement
What does this mean?
👉 When an insurance company invests 1 dollar in crypto assets,
👉 it must simultaneously hold 1 dollar in capital as a risk buffer.
Participation is allowed, but aggressive strategies are not.
Are there already players taking action?
Yes, and leading institutions are taking the lead:
Pilot allocations
Designed by top global asset managers for compliance products
Focusing on:
‍#比特币
#Ethereum
Stablecoin-related assets
Digital financial infrastructure
Explicitly avoiding high-risk altcoins.
A longer-term signal has already appeared
Many people haven't noticed:
In February this year,
👉 Hong Kong approved Ethereum as an asset proof for investment immigration.
In October last year,
👉 the first Bitcoin asset proof investment immigration success in Hong Kong.
Looking further back:
Stablecoins
Insurance
Investment immigration
Asset proof
Putting these together, there is only one conclusion:
👉 Crypto assets are being systematically integrated into Hong Kong's mainstream financial and wealth systems.
To sum up in one sentence:
The so-called "delisting USDT in Hong Kong"
👉 is essentially about clearing unlicensed channels,
and "allowing insurance companies to invest in crypto assets"
👉 is a major institutional opening.
One is tightening borders,
the other is opening the front door.
Looking at them together, Hong Kong's attitude is actually very clear:
It's not about prohibition, but about leaving space for compliance.
The wind has already started.
Whether you can ride the wave
depends on whether you understand—
the changing rules.
👇 Share your thoughts in the comments.