JD.com moves into cryptocurrency

The Hong Kong Financial Services and the Treasury Bureau (Treasury Bureau) and the Hong Kong Monetary Authority (HKMA) jointly issued a consultation summary on July 17 on the legislative proposals for the implementation of a regulatory system for fiat currency stablecoin issuers in Hong Kong. And on July 18, the list of participants of the stablecoin issuer's sandbox was announced, including: JD Coin Chain Technology (Hong Kong) Co., Ltd. ; Yuancoin Innovation Technology Co., Ltd.; and Standard Chartered Bank (Hong Kong) Co., Ltd. Proposed Group Co., Ltd., Hong Kong Telecommunications (HKT) Limited.

The parent company of JD Coin Chain Technology is JD Technology, a subsidiary of the Financial Group. JD Coin Chain Technology Company was officially registered in March 2024. Its main business includes digital currency payment systems and blockchain infrastructure construction.

According to media reports, Liu Peng, CEO of JD Coin Chain Technology Company, is currently the vice president of JD Technology. At present, JD Coinchain Technology has obtained Type 1 (securities trading), Type 4 (providing advice on securities) and Type 9 (asset management) licenses from the Hong Kong Securities and Futures Commission (SFC).

The “Sandbox” launched in March 2024 is one of the HKMA’s initiatives to promote the sustainable and responsible development of Hong Kong’s stablecoin ecosystem. The HKMA uses a "sandbox" to allow institutions interested in issuing stablecoins in Hong Kong to test their operational plans and conduct two-way communication on proposed regulatory requirements to formulate a fit-for-purpose and risk-based regulatory system.

Secretary of the Treasury Bureau Hui Ching-yu said: “In addition to the current regulatory system for virtual asset trading platforms, the establishment of a licensing system for fiat currency stablecoin issuers will strengthen Hong Kong’s virtual asset regulatory framework, be consistent with international standards, and effectively mitigate "Risks to financial stability posed by activities related to the issuance of fiat stablecoins."

Manuel Yu, President of the Hong Kong Monetary Authority, said: "We sincerely thank the respondents for their valuable comments and are encouraged by their general support for the proposed regulatory regime. A good regulatory environment will help promote the sustainable and responsible development of Hong Kong's stablecoin ecosystem. "The Treasury Bureau and the Hong Kong Monetary Authority will finalize legislative proposals to implement the regulatory system in response to the opinions and suggestions of the respondents, and will submit them to the Legislative Council as soon as possible. Submit Bill.

Regarding the development of stable currency in Hong Kong, some scholars have also proposed another path.

In July 2023, Wang Yang, Vice President of Hong Kong University of Science and Technology and Chief Scientific Advisor of Hong Kong Web3.0 Association, angel investor Cai Wensheng, founder of Block City Web3.0 Technology Company Lei Zhibin, Hong Kong University of Science and Technology doctoral student Wen Yizhou published policy recommendations in Ta Kung Pao, proposing that Hong Kong issue a Hong Kong dollar stable currency backed by foreign exchange reserves.

The article stated that stablecoins, a tool that plays a bridge role between traditional finance and the digital economy, have become an important issue in Hong Kong’s promotion of the development of digital assets. Stablecoins play a role that cannot be ignored in the digital financial ecosystem.

Hong Kong’s issuance of its own currency’s stablecoin will not only help consolidate Hong Kong’s blockchain leadership, but also promote the progress of the digital Hong Kong dollar, improve transaction efficiency, reduce transaction costs, improve the current payment system, and further strengthen Hong Kong’s financial technology strength.

At the same time, the Hong Kong dollar stable currency can improve the efficiency and inclusiveness of Hong Kong’s financial system. Its stability, free convertibility, high security, high openness and cross-border liquidity can provide support for a wider range of financial innovation. The launch of the Hong Kong dollar stable currency will undoubtedly inject new impetus into Hong Kong's economy and help enhance Hong Kong's competitiveness in the digital economy era.

The article "strongly calls on" the SAR government to issue a Hong Kong dollar stable currency (hereinafter referred to as HKDG, where G represents the government) backed by Hong Kong's foreign exchange reserves.

The Hong Kong dollar stablecoin endorsed by the government will have double protection: on the one hand, it will benefit from government supervision; on the other hand, it will benefit from the information transparency and non-tamperability brought by the blockchain contract. This innovative policy direction will provide strong support for Hong Kong’s leadership in digital finance.

They believe that the SAR government’s current plan is limited to allowing and encouraging private institutions to issue Hong Kong dollar stablecoins. In our opinion, this measure is too conservative and cannot be coordinated with the SAR government’s large-scale plan to promote digital assets and digital economy.

Source丨Lingyi Finance

The above is the detailed content of JD.com moves into cryptocurrency. For more information, please follow other related articles on the PHP Chinese website!