This article analyzes the four major risks faced by Tether: the impact of stablecoin legislation, regulatory risks related to government bond collateral, competitive threats from companies like PayPal, and the risks of litigation and investigation. It also discusses the potential de-pegging risk of USDT due to regulation and competition.

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations on digital asset transactions in 2024. The introduction of these regulations is a result of the Infrastructure Investment and Jobs Act, which promotes the strengthening of cryptocurrency tax regulation.

Starting from 2021, the Chinese government has explicitly prohibited cryptocurrency trading. As an international financial center, Hong Kong's open attitude and policies towards cryptocurrencies provide new channels for investors from mainland China. What will be the future of cryptocurrency OTC in Hong Kong?