The post Hong Kong Rules Limit Stablecoin Derivative Trading: DBS CEO appeared on BitcoinEthereumNews.com.

Hong Kong’s stablecoin regulatory framework limits their use for derivatives trading on blockchain networks, according to Sebastian Paredes, CEO of DBS Hong Kong. According to a Friday report by local news outlet The Standard, Paredes said that Hong Kong regulations on stablecoin Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements will significantly restrict their use for onchain derivatives trading. He said the bank would monitor developments, but focus instead on building broader stablecoin capabilities in Hong Kong. His comments followed the rollout of Hong Kong’s new stablecoin rules on Aug. 1. The rules immediately criminalized the promotion of unlicensed stablecoins and established a public registry of authorized issuers. Others have also criticized Hong Kong’s stablecoin rules as overly harsh. When the framework was introduced, stablecoin companies operating in Hong Kong posted double-digit losses, attributed to stricter rules than expected. DBS Bank in Hong Kong. Source: Wikimedia Related: Animoca and Standard Chartered form stablecoin venture in Hong Kong DBS is not new to crypto The local DBS branch is a major bank in Hong Kong and holds nearly 492 billion Hong Kong dollars ($63.2 billion) as of last year, according to regulatory filings. DBS is also the largest bank in Southeast Asia by assets, totaling $842 billion Singapore dollars ($620 billion). The bank has long been involved with blockchain technology and the crypto industry. Earlier this month, DBS, Franklin Templeton and Ripple joined forces to launch tokenized trading and lending services for institutional investors, leveraging the XRP Ledger. In late August, DBS also decided to expand its digital asset offerings with the launch of tokenized structured notes on the Ethereum blockchain. The bank is no stranger to stablecoins, being responsible for managing the US dollar reserve of the Global Dollar (USDG). In late 2024, DBS also introduced a new suite…

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Filed under: News - @ September 27, 2025 12:28 am