Blockchain security company BlockSec reviewed the Ethereum mainnet contract of the Hong Kong-licensed HKD stablecoin, HKDAP, and pointed out several security and compliance issues. These include the failure of KYC revocation logic, the lack of on-chain verification for KYC proof, and excessive centralization of certain high-risk permissions. BlockSec highlighted that operations like minting, freezing, pausing, and forced burning of HKDAP can be executed by a single role, and the governance process lacks a time lock. They believe these designs are inconsistent with the Hong Kong Monetary Authority's regulatory guidelines on high-risk operations and duty segregation. HKDAP is issued by Anchorpoint Financial, a company jointly established by Standard Chartered Hong Kong, HKT, and Animoca Brands. Anchorpoint is one of the first two licensed stablecoin issuers in Hong Kong. https://(wublock123.com)/news/blocksec-hkdap-hong-kong-stablecoin-security-compliance-risks-66519