- Circle has signed an MOU with HKT to explore a blockchain-based customer loyalty solution for merchants in Hong Kong.
- Hong Kong is considering imposing new tax concessions for virtual assets.
Circle, the issuer of the stablecoin USDC, has officially signed a Memorandum of Understanding (MOU) with Hong Kong Telecom (HKT) to explore a blockchain-based customer loyalty solution customized for merchants in Hong Kong. This partnership focuses on leveraging Web3 technology to create dynamic engagement experiences between consumers and merchants.
According to the Circle’s October 29 announcement, this collaboration seeks to modernize the way businesses engage with their customers. According to recent data, the global loyalty market holds a value of $5.57 billion, and approximately 70% of consumers consider loyalty programs as a significant factor in their purchasing decisions.
Further, the initiative will integrate Circle’s Programmable Wallets with a plan to enable safer management of digital assets and smart contracts within existing consumer and enterprise applications. This move aims to streamline the Web3 experience and enhance the effectiveness of loyalty initiatives.
In addition to its collaboration with HKT, Circle also formed a partnership with Thunes to innovate stablecoin liquidity management to improve innovation in managing stablecoin liquidity.
Since USDC launched in 2018, Circle has processed a total volume of $17 trillion, although only about 6.8% of the global population currently engages with cryptocurrencies. Currently, USDC has a market cap of $34.69 billion and is poised to play a crucial role in the growing digital currency landscape.
Hong Kong Explores Tax Concessions and Expands Licensing for Crypto Exchanges
Meanwhile, Hong Kong is considering new tax concessions for virtual assets, according to Christopher Hui, the Secretary for Financial Services and the Treasury, who spoke at Hong Kong Fintech Week on October 28.Â
Additionally, the city plans to issue more licenses for cryptocurrency exchanges by the end of 2024. The Hong Kong Securities and Futures Commission (SFC) aims to fully license more digital asset exchanges by year-end, following a five-month review. A list of approved platforms is expected to be published soon.
However, after Hong Kong introduced the license system in July, many crypto firms and exchanges were closed and withdrew applications. Around 13 crypto exchanges or trading platforms have withdrawn their license applications, with some having their applications returned for unrevealed reasons.
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