After enticing crypto leaders to establish firms and exchanges, Hong Kong allowed retail investors to 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 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.
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.
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.
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.