According to the source, Mainland China continues to prohibit crypto trading, exchange intermediation, and token issuance under the Sept 24, 2021 joint notice, keeping onshore liquidity suppressed and enforcement risk elevated for CNY onramps, source: People's Bank of China and multiple ministries, 2021. The PBOC is simultaneously advancing the e-CNY program, underscoring a policy preference for sovereign digital currency over private crypto assets, source: People's Bank of China, 2021 e-CNY white paper. In contrast, Singapore’s MAS issued a stablecoin framework on Aug 15, 2023 requiring high-quality reserves, T+5 redemption, and clear disclosures for SCS pegged to SGD or G10 currencies, providing regulatory clarity for compliant USD- and SGD-pegged stablecoins, source: Monetary Authority of Singapore, 2023 stablecoin framework. Hong Kong’s HKMA launched a stablecoin issuer sandbox in March 2024 and, together with the FSTB, is developing a licensing regime for fiat-referenced stablecoins, laying formal groundwork for regulated issuance and use, source: Hong Kong Monetary Authority, 2024; Financial Services and the Treasury Bureau of Hong Kong, 2024. Japan’s revised Payment Services Act effective June 2023 permits issuance and distribution of stablecoins by banks, trust companies, and certain intermediaries under FSA oversight, enabling onshore yen- and foreign currency-pegged stablecoins, source: Japan Financial Services Agency, 2023 PSA amendments. South Korea’s Virtual Asset User Protection Act effective July 2024 strengthens custody, market abuse, and disclosure rules for exchanges, tightening compliance standards across local venues, source: Financial Services Commission of Korea, 2024. Stablecoins constitute the majority of crypto transaction volume in East Asia, concentrating regional liquidity in major pairs such as USDT and USDC during Asia hours, source: Chainalysis, 2023 Geography of Cryptocurrency Report; CoinGecko, 2024 stablecoin market data. For trading strategy, the divergence implies restricted Mainland CNY onramps but improving regulated rails via Singapore, Hong Kong, and Japan for compliant USDT and USDC flows, requiring venue and token selection aligned with local licensing and redemption rules, source: People's Bank of China, 2021; Monetary Authority of Singapore, 2023; Hong Kong Monetary Authority, 2024; Japan Financial Services Agency, 2023.

According to @thisisRita_Liu, Hong Kong has passed a stablecoin bill, marking a historical milestone for the stablecoin industry. RD Technologies, one of only three participants in the Hong Kong Monetary Authority (HKMA) stablecoin issuer sandbox, expects significant regulatory clarity and increased institutional adoption following this development. Traders should watch for increased stablecoin flows and potential liquidity surges in Hong Kong-linked crypto assets, as regulatory certainty often attracts global investment and trading volume. Source: @thisisRita_Liu on Twitter.