DBS Hong Kong CEO says new regulations could restrict stablecoin trading

Hong Kong's new regulatory framework for stablecoins could restrict their use in on-chain derivatives trading, according to DBS Hong Kong CEO Sebastian Paredes. In a recent interview with local media outlet The Standard, Paredes said that stablecoins in the city should focus on strengthening their capabilities. The comments follow Hong Kong's official enactment of a stablecoin ordinance on Aug. 1. The new rules establish a licensing system for stablecoin issuers as part of an improved regulatory framework.