Yuan Technology’s Regulatory Engagement
In a recent dialogue with the 21st Century Business Herald, Liu Yu, the CEO of Yuan Technology, expressed that over the past year, the company has engaged in extensive discussions regarding regulatory frameworks with the Hong Kong Monetary Authority (HKMA). This engagement has involved a thorough exploration of various potential applications and strategic business plans.
Focus Areas for Stablecoin Initiatives
Yuan Technology is poised to concentrate on its stablecoin initiatives within three key areas:
- Facilitating cross-border trade and payments
- Establishing a regulated virtual asset exchange in Hong Kong
- Delving into the tokenization of Real World Assets (RWA) in the region
Liu Yu noted the flexibility of the upcoming “Stablecoin Regulation,” which allows for the creation of multi-currency stablecoins. Although the firm’s initial focus will be on the Hong Kong dollar, there are aspirations to expand into other currencies in the future. Furthermore, the company plans to enhance its operations in the RWA sector.
Recent Approvals by HKMA
Notably, in July of the previous year, the HKMA revealed its first three approved stablecoin issuers, which included Circular Coin Innovation Technology Limited, a subsidiary of Yuan Technology, alongside JD Coinlink Technology (Hong Kong) Limited and a consortium involving Standard Chartered Bank (Hong Kong), ANNA Group, and Hong Kong Telecom.
