A plan to allow ordinary investors to trade in digital currencies such as bitcoin and ether was presented in Hong Kong. In late October, Hong Kong adopted a pro-crypto stance as part of a larger effort to restore the city’s reputation as a financial hub.
In a policy change that contrasts with a crackdown in the United States, Hong Kong unveiled plans to allow retail investors to trade in digital currencies such as bitcoin and ether, in a move towards its ambition to become a crypto hub is an important step.
The regulator said in a consultation document on February 20 that provided measures including knowledge tests, risk profiles, and appropriate risk limits, individual investors will be allowed to trade in major currencies on exchanges registered by the Securities and Futures Commission.
new point on rules
The names of the coins that would be accessible to regular investors were not specified.
The March 31–April 31 comment session aims to allow retail trading under the new crypto exchange licensing regime that will take effect from June 1.
According to a spokeswoman for the SFC, the Hong Kong-based platform is expected to list bitcoin and ether, the two largest digital assets by market value.
Hong Kong adopted a pro-crypto stance in late October last year, as part of a larger initiative to re-establish the city’s credibility as a financial hub.
To develop a necessary regulatory framework that can attract businesses and protect investors, authorities are drawing lessons from a wave of bankruptcies around the world, including last year’s $1.5 trillion digital asset crash and the collapse of the FTX exchange. are expecting.
Trading in bitcoin and ether futures from exchange-traded funds (ETFs) CME Group has already been permitted by the government, and this month saw the sale of digital green bonds for the first time.
New rules for crypto trading platforms
In other news, Hong Kong’s Securities and Futures Commission (SFC) released its draft regulations for virtual asset trading platforms on Monday and is now accepting public feedback.
The notice states that any cryptocurrency trading platforms, including those they already exist, that wish to apply for a license under the new regime “will begin to assess and optimize their systems and processes in preparation for the new regime.” should give”.
Hong Kong still faces many challenges, including a downturn in the virtual asset sector that has resulted in thousands of job losses. After a turbulent 2022, crypto markets have only partially recovered.
Businesses may be reluctant to invest their limited resources until the contours of Hong Kong’s policy landscape are more clear.
