At the end of December Hong Kong launched a consultation on legislative proposals related to stablecoin issuers. The consultation is jointly run by the Hong Kong Monetary Authority (HKMA) which will be the stablecoin regulator and the Financial Services and the Treasury Bureau (FSTB). It runs until the end of February. Additionally, the HKMA plans to launch a regulatory sandbox for the same purpose.

Bitmex founder Arthur Hayes discussed the ultimate demise of Tether and other stablecoin companies. Hayes explained that Tether's business model involves acquiring US dollars and investing in government bonds, and when big banks like JPMorgan are allowed to issue fiat-backed stablecoins, they will eventually eat into Tether's market share. Although Tether has positioned itself as an excellent product in the cryptocurrency market, its position is only achieved because the US refuses to provide similar products through the banking system.

Wyoming wants to create its own stablecoin. Over the past five years, Wyoming has earned a reputation as the “Crypto Cowboy State” thanks to numerous crypto-friendly laws passed by its legislature, covering digital assets, banking, decentralized autonomous organizations, and — most recently — the prospect of a state-governed stablecoin, possibly issued as soon as 2024.

Stablecoin TrueUSD (TUSD) has announced a partnership with accounting firm MooreHK. Starting from late January 2024, MooreHK will provide daily legal reserve verification services for TUSD and daily verification reports for its stakeholders and TUSD token holders. TUSD has recognized the importance of stablecoin reserve proof and sufficient reserves are crucial for supporting TUSD's growth and development. MooreHK and The Network Firm will both become its partners.

Hong Kong's financial regulators have released proposals for a licensing regime and regulatory sandbox to supervise stablecoin issuers and provide guidance on compliance. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are seeking feedback on the proposals until Feb. 29. The regime will require issuers who meet certain conditions to obtain a license from the HKMA, and firms looking to issue a fiat-referenced stablecoin in Hong Kong or market stablecoins to the Hong Kong public will need a license to operate. The move is part of Hong Kong's efforts to position itself as a regional crypto hub and follows the implementation of a licensing regime for crypto service providers in June.

According to the "PwC Global Cryptocurrency Regulatory Report 2023" released on December 19, BlockBeats news reported that as many as 25 countries/regions will have stablecoin legislation or regulation in place by 2023. These countries, according to PwC's analysis and regulatory assessment, include Austria, the Bahamas, Denmark, Estonia, Finland, France, Germany, Greece, Japan, Luxembourg, Portugal, Spain, Sweden, Switzerland, and others. The vast majority of countries/regions that have enacted stablecoin laws have also ensured or implemented all other regulatory reviews, including cryptocurrency regulatory frameworks, licensing or registration, and travel rules of the Financial Action Task Force.

According to Binance market data, stablecoin TUSD is currently trading at 0.9953 USDT, with a 24-hour decrease of 0.39%.

Major banks in Nigeria are collaborating to create and regulate the cNGN stablecoin, a new type of digital currency aimed at providing benefits for token holders and the Nigerian economy. According to an anonymous source within the project, the cNGN token is fully backed, ensuring a direct correlation with every Naira held by these leading banks.

A deep dive into the overcollateralized stablecoin backed by ETH liquid staking derivatives

Stablecoin issuer Paxos has received approval from the New York financial regulatory agency to expand its stablecoin to the Solana blockchain and plans to launch on January 17, 2024. This is the first time the regulatory agency has allowed Paxos to issue stablecoins outside of Ethereum.