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Hong Kong and U.S. to Implement Regulatory Frameworks for Stablecoins

Hong Kong and the US are developing regulatory frameworks for stablecoins as digital currencies become more prevalent in the finance world. Hong Kong is focusing on fostering growth in its Web3 ecosystem while prioritizing investor protection, with clear guidelines for stablecoin regulation expected by the end of 2024.

The US is taking a more cautious approach, with proposed regulatory rules for the stablecoin market and legal actions against issuers violating securities laws. The different regulatory styles between the two jurisdictions may lead to fragmentation in the digital currency world, with their decisions having far-reaching effects on global stablecoin markets.

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