Home » Hong Kong May Overturn Crypto Rules, Open Trading to Retail Investors: Report

Hong Kong May Overturn Crypto Rules, Open Trading to Retail Investors: Report

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Hong Kong plans to introduce new rules to legalize retail trading of cryptocurrencies in the city as part of its efforts to become a cryptocurrency hub. bloomberg report.

The program, which is set to launch in March next year, will reportedly introduce mandatory licensing for crypto platforms.

However, the timetable for such moves has not been finalized and is still subject to public consultation.

This comes amid Hong Kong’s efforts to reclaim its status as a cryptocurrency hub after Covid-19, political turmoil and regulations eroded Hong Kong’s reputation as a place for crypto entrepreneurs to do business. It was held in.

The move to allow retail traders to return to digital assets Teased by Elizabeth Wonghead of the fintech division of the Securities and Futures Commission (SFC) last week.

At an event, she said the government is considering its own crypto regulation bill and the SFC is considering allowing individuals to “directly invest in crypto assets.”

The city has been the birthplace of Asian cryptocurrencies in the past, hosting the likes of Binance and Sam Bankman-Fried’s FTX.

However, a voluntary licensing regime introduced in 2018 effectively limited the cryptocurrency platform to institutional investors with portfolios worth at least HK$8 million ($1 million).

Allowing the consumer-facing platform to operate could be the first step to bring back companies that have diverted interest from Hong Kong in recent years.

China key to Hong Kong’s crypto success

Questions remain about what a looser approach in Hong Kong means for the industry in relation to mainland China.

write in on his blog In response to the news of Hong Kong’s “comeback” effort, BitMEX co-founder Arthur Hayes said that access to Chinese customers is essential for Hong Kong to be attractive to cryptocurrency companies. I said yes.

“As crypto investors, we are interested in Hong Kong’s ability to facilitate Chinese capital needs,” he wrote. “Whether it’s retail sales or capital flows, it’s the ordinary wealthy Chinese who keep the Hong Kong economy going.”

He also expressed concern about how China would use force against Hong Kong to undermine changes in favor of cryptocurrencies.

“What does it mean that Beijing will not change its mind tomorrow and withdraw all these positive crypto policies?”

But he added that he believed “China is real” this time.

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