HK Stock Market Move | Stablecoin concept afternoon decline expands, BRIGHT SMART (01428) falls more than 16%. Hong Kong stablecoin regulations come into effect today.

Concept stocks of stablecoins fell further in the afternoon, as of the time of writing, BRIGHT SMART (01428) fell by 16.67% to 12.3 Hong Kong dollars; LIANLIAN (02598) fell by 9.93% to 10.52 Hong Kong dollars; OSL GROUP (00863) fell by 9.32% to 14.98 Hong Kong dollars; GUOTAI JUNAN I (01788) fell by 7.97% to 5.89 Hong Kong dollars. On the news front, on August 1st, the Hong Kong "Stablecoin Regulations Bill" officially came into effect, which establishes a licensing system for issuers of fiat currency stablecoins in Hong Kong to enhance the regulatory framework for virtual asset activities in Hong Kong to maintain financial stability and promote financial innovation. After the implementation of the "Stablecoin Regulations", anyone issuing fiat currency stablecoins in Hong Kong in their business processes, or issuing fiat currency stablecoins claiming to be anchored to the value of the Hong Kong dollar in Hong Kong or elsewhere, must apply for a license from the Financial Commissioner. Related parties must comply with regulations on reserve asset management and redemption, including proper segregation of customer assets, maintenance of a sound stable mechanism, and the need to redeem stablecoin holders' redemption requests at face value under reasonable conditions. Related parties must also comply with a series of requirements on combating money laundering and terrorist financing, risk management, disclosure requirements, auditing, and appropriate personnel selection. The Financial Commissioner will provide further consultations on detailed regulatory requirements of the system in a timely manner.