Hong Kong’s FSTB Proposes to Restrict Crypto Trading for Retail Traders

Published by
Hong Kong’s FSTB Proposes to Restrict Crypto Trading for Retail Traders

The Financial Service and the Treasury Bureau (FSTB) of Hong Kong today proposed to ban crypto trading services for retail traders and require a crypto license for exchanges to operate in the country. The new proposal would only allow professional traders with a portfolio of HK$8 million ($1.03 million) to avail any crypto trading services. As per a recent survey, only 7% of the population in the country qualify to be counted as professional traders.

The government has made a similar proposal back in March this year and this Friday doubled down on the same with a plan to turn its proposals into law in the upcoming 2021-22 session of the city’s legislative assembly.

At present, the crypto exchanges are required to register with the Securities and Futures Commission but the government has an ‘opt-in’ approach which means the exchanges can opt against registering and can have retail traders.

The exchanges currently operating without a license are liable to a fine of HK$5 million and imprisonment for seven years; And, in the case of a continuing offense, a further fine of HK$100,000 for each day during which the offense was continued.

Advertisement

Hong Kong Looking to Tighten Regulation Around Crypto Service Provider

Hong Kong was seen as one of the most progressive nations when it comes to fintech regulations, but the recent influence of China in the administration could potentially be one of the key reasons behind the recent tightening regulatory policies around crypto assets, something which is strictly prohibited in mainland China. Recently three associate institutions of People’s Bank of China issued notice for financial service providers to refrain from offering crypto trading services.

Some of the world’s leading crypto exchanges in the world including Binance, OKEx, Gemini, and many others offer their service to Hong Kong citizens. The new proposed legislation would not only curtail the crypto traders in the country but would also make it more complex for crypto exchanges to function in the country.

Advertisement

Share
Prashant Jha

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading

FG Nexus has announced that it will allow shareholders to convert common stock into tokenized…

October 2, 2025
  • Bitcoin News

Bitcoin Still Undervalued, JPMorgan Forecasts Rally to $165,000

JPMorgan says Bitcoin (BTC) is undervalued compared to gold and could rise to $165,000, giving…

October 2, 2025
  • 24/7 Cryptocurrency News

Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand

Derivatives exchange CME Group has announced plans to begin offering 247/7  crypto futures and options…

October 2, 2025
  • Bitcoin News

Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months

Banking giant Citigroup has revised its Bitcoin prediction to $231,000 in the next 12 months,…

October 2, 2025
  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025
  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025