As Hong Kong prepares to unveil new regulations for stablecoins, including allowing digital currencies on public blockchains, a trial of a KYC solution has been introduced. This trial will give Mainland Chinese residents the opportunity to legally hold public chain wallets and conduct transactions with stablecoins, such as HKDA. HKDA is a fiat-referenced stablecoin pegged to the Hong Kong Dollar and issued by IDA.
The companies involved in this project stated that it could be the first step towards aligning with China’s strategy for integrating blockchain technology in the long run. This development is significant as it opens up new possibilities for Mainland Chinese residents to engage with digital currencies on public blockchains in a legal and regulated manner.
