These Cryptocurrencies May Pump Over Hong Kong SFC New Update

Crypto News: Hong Kong’s Securities and Futures Commission (SFC) on Tuesday concluded consultation around suggested rules for Crypto assets. This major development comes when globally crypto linked firms and investors are seeking clear regulations. However, experts suggest that Hong Kong SFC update might lead several top digital assets to surge ahead.

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Cryptocurrencies That May Rally Over Hong Kong SFC Update?

According to a report, the general framework is similar to the prior one in many aspects. The Hong Kong government mentions that the cryptocurrencies purchased by retail investors should be included in the two major indexes. This is set to be the minimum requirement.

Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Polkadot (DOT), and Solana (SOL) are included in at least 3 major indexes. However, other coins added on just indexes made to the list will be Cardano (ADA), Avalanche (AVAX), Polygon (MATIC), and Chainlink (LINK). It is expected that these coins might be listed in the first batch of Hong Kong complied exchanges.

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As per the Hong Kong SFC, Non security tokens would need to have a 12-month no bad background. Meanwhile, stablecoins are not currently part of it. The authority hasn’t allowed stablecoins to be purchased by retail investors.

The authority added that the EARN and lending services will not be supported. While advertising activities linked to some of the digital assets will not be part of it. However, proprietary trading is outlawed and platforms are not allowed to hold any crypto assets.

Hong Kong All Set To Accept Crypto Exchange Applications From June 1st

As per the report released by Hong Kong SFC, crypto platforms can apply for exchange licenses from June 1st. As part of the concluded guidelines, crypto gifts such as airdrops will not be permitted. Also, unregulated stablecoins will not be allowed for trading crypto assets. The report also shares rules around the listing of tokens on exchanges including but not limited to independent smart contract audits and regulatory compliance.