A week after the stablecoin regulation came into effect, the size of Hong Kong's over-the-counter market fell by about 33%.
3 hours ago

According to Odaily Planet Daily, Bitrace has been monitoring the business address traffic of VAOTC entities located in Hong Kong or primarily serving Hong Kong clients (covering TRC20-USDT outbound transfer data from all service providers between June 1 and July 31, and August 1 to August 8, 2025, Beijing time, and excluding non-operational transfer activities between business addresses). Between June 1 and July 31, all business addresses transferred out a total of 3.17 billion USDT, an average of 52.04 million USDT per day; between August 1 and August 8, all business addresses transferred out a total of 279 million USDT, an average of 34.9 million USDT per day. Compared to before the regulations came into effect, the overall size of the stablecoin exchange market decreased by 32.94% after August 1. Furthermore, after the regulation came into effect, the average daily USDT outflow from the business addresses of store-based service providers decreased by 43.20% (from 9.47 million to 5.38 million), while the number of business addresses of non-store-based service providers decreased by 30.65% (from 42.57 million to 29.52 million). The significant impact on store-based service providers compared to non-store-based providers suggests that some businesses in Hong Kong's OTC trading industry have gone underground in a short period of time since the regulation took effect.

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