Hong Kong Fully Delists USDT, Crypto Market Faces Dual Regulatory Storm

Hong Kong has announced the complete delisting of USDT, a move that has sent shockwaves throughout the global crypto community! Mainland China’s “zero tolerance” crackdown on stablecoins, combined with Hong Kong’s major regulatory adjustments on USDT, has created a dual storm that is shaking the very foundations of the crypto industry, ushering in a disruptive reshaping of the market landscape.

First, let’s look at the regulatory stance in mainland China, which has consistently maintained a tough, swift approach. Led by the central bank, 13 departments have jointly stated that stablecoins are now classified as illegal financial activities, with a total ban on all aspects of stablecoin issuance and trading. On the capital channel front, regulators have completely severed any links between banks and stablecoin transactions, and overseas trading platforms involved have been blacklisted, creating a “domestic-international linkage” and a closed-loop regulatory framework. The strength of this crackdown is evident in the numbers: since the start of the year, 342 stablecoin-related cases have been investigated, involving a total of 4.6 billion yuan. Meanwhile, the digital yuan is making steady progress, with cross-border payment volumes surpassing 10 trillion yuan, gradually becoming one of the mainstream global cross-border payment options and an important compliant alternative to stablecoins.

Hong Kong’s recent regulatory “overhaul” has been even more targeted and forceful, drawing intense market attention. Through the newly introduced “Stablecoin Ordinance,” the Hong Kong government has imposed strict controls on Tether (the issuer of USDT), completely prohibiting retail investors from participating in USDT trading and only allowing access to professional investors. As of December, no stablecoin-related companies in Hong Kong had obtained regulatory licenses, and the high capital thresholds and stringent liquidity reserve requirements set by the Hong Kong Monetary Authority have effectively erected an “entry firewall” for the stablecoin market. Notably, Hong Kong’s regulatory approach is not “one-size-fits-all,” but instead focuses on guiding stablecoin services toward the real economy—for example, Caesar Travel has successfully implemented stablecoin-to-RMB exchange services for foreign tourists, significantly improving settlement efficiency for cross-border spending and becoming a typical case of stablecoins empowering the real economy.

Under the dual regulatory crackdown, the crypto market landscape has undergone dramatic changes. Mainland China’s “zero tolerance” policy has directly led to a sharp contraction in stablecoin trading volumes, with USDT’s domestic market share plummeting from a peak of 90%. Capital flows have fundamentally shifted as a result, with large sums accelerating into the digital yuan system or moving toward compliant offshore financial instruments, making the trend of “moving from speculation to real-world utility” in the crypto market increasingly apparent. Even global top-tier investment firms like Sequoia Capital have begun to reassess the risks and opportunities in the cryptocurrency market and adjust their strategies. Clearly, against the backdrop of tightening global regulations, the future of the crypto market is far more complex than imagined, with compliance and real-world application likely to become its only viable paths forward. #广场发帖领$50