1. Real-name KYC, user information retention for over 5 years, and more importantly, prohibition from entering DeFi scenarios and anonymous wallets. - I don't understand, since it's about stablecoins, the regulations are so strict, I can't see the difference between this and the digital RMB that was withdrawn from the mainland before? In the end, isn't it just a variation of fiat? Moreover, why are USD stablecoins USDT and USDC so popular? Besides mentioning special application scenarios and trading platforms, the contribution of DeFi applications cannot be overlooked. Without the yield function of DeFi, what is the motivation for holding Hong Kong dollar stablecoins? Do you really have to do KYC?!

2. A license is required. Any institution issuing or providing fiat-backed stablecoins to local retail in Hong Kong must be licensed. The first round of applications closes on September 30, and the first batch of licenses is expected to be issued in early 2026. This means that USDT and USDC must apply for a license to operate in Hong Kong, adhering to a 1:1 reserve system, and more critically, they need to be managed and isolated. I find this doubtful; USDT will definitely not operate according to this. The reserves of USDT are held on Bitfinex and in their own hands; how could you possibly manage hundreds of billions in government bonds? Does Tether seem to be foolishly rich?