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After enticing crypto leaders to establish firms and exchanges, Hong Kong to allow retail investors trade Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies, according to sources familiar with the matter.
Amid the clampdown against crypto in several leading economies, Hong Kong leveraging this opportunity to increase its dominance as the city’s crypto hub initiative attracts global crypto exchanges and firms.
Hong Kong Push Up Crypto Hub Plan By Enabling Crypto Retail Trading
Hong Kong Securities and Futures Commission (SFC) is set to announce retail investors’ participation in crypto at a press conference on May 23. The authorities are looking to let retail investors trade only top cryptocurrencies as per new rules of the agency.
Hong Kong takes a more progressive approach by introducing regulations and licenses for the crypto industry while China, the U.S., and other countries restrict crypto. The city plans to introduce a licensing regime for virtual asset firms in May, with retail access slated for June 1.
Lennix Lai, CCO at crypto exchange OKX, said:
“I expect the conclusion of the consultation to reflect the view from the digital-asset community that safe, secure and compliant retail trading is a key aspect of a robust virtual asset ecosystem.”
In a February consultation paper, a plan was introduced to let retail investors trade top virtual assets on exchanges licensed by the SFC. Safeguards such as knowledge tests, risk profiles, and reasonable limits on exposure are in place to ensure investor protection. Furthermore, investors are restricted from trading crypto assets that are not included in at least two investible indexes from reputable providers, with one of which having experience in the traditional finance industry.
Also Read: Binance CEO Supports Terra Classic Raising LUNC Burn Tax To 0.5%
Crypto Firms Moves to Hong Kong
While the crypto regulatory concerns still remain an issue, Hong Kong is at the forefront of adoption as crypto exchanges such as OKX and Huobi plan to apply for licenses.
HashKey and BC Technology Group Co.’s OSL are the only two licensed exchanges in Hong Kong. HashKey Group plans to raise $100 to $200 million at over $1 billion valuation.
Ripple has joined the Hong Kong Monetary Authority’s (HKMA) the e-HKD Pilot Programme. BitMEX announces BitMEX Hong Kong, a dedicated service to comply with Hong Kong Virtual Asset Service Provider (VASP) regime.
Also Read: Smart Money More Inclined To Invest In Ethereum Over Bitcoin: Bloomberg
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