Justin Sun, founder of blockchain TRON, has suggested the imminent release of a cryptocurrency tied to the Hong Kong dollar. In a tweet, Sun hinted at the possible launch of an HKD stablecoin on the TRON network. However, Twitter is blocked in Russia.
TRON’s popularity
TRON is popular due to its low transaction fees, with transfers of Tether (USDT) tokens costing about $1. The majority of the leading stablecoin, 45 billion USDT out of 81 billion USDT, is issued on the TRON network. TRON also conducts transfers of other stablecoins like USDC, TUSD, USDD, and many more cryptocurrencies. According to TRONSCAN, the total transfer amount on the blockchain has exceeded $7.4 trillion, with 156 million user accounts.
Expanding in Hong Kong
Since the Hong Kong authorities have shown support for the crypto industry and introduced clear regulatory rules, Sun has actively expanded his company’s presence in the region. In an interview with Bloomberg on April 26, he stated that he would focus on developing his business in Hong Kong.
Huobi’s initiatives in Hong Kong
In early February, Huobi, which is led by Sun, applied for one of the first cryptocurrency licenses in Hong Kong. Sun also announced the launch of a new exchange called Huobi Hong Kong, which will focus on providing trading services to institutional investors and wealthy individuals from Hong Kong.
New licensing regulations
According to the new licensing regime that will come into effect in the region on June 1, all centralized platforms doing business in or serving local investors in Hong Kong must obtain a license from the Securities and Futures Commission of Hong Kong (SFC). In May, the regulator plans to publish guidance on the new regime for crypto exchanges.
SEC lawsuit
Meanwhile, in the US, the Securities and Exchange Commission (SEC) has sued Justin Sun and his companies for the unregistered sale of securities. Sun responded to the SEC’s complaint on social media, saying that the agency’s allegations are unfounded, and his ecosystem will continue to “build the most decentralized financial system.”