For more than four years, The Hong Kong Financial Authority had banned people from doing business crypto on centralized exchanges, reserving it for professional investors (with at least $1 million in portfolio). But since last October he has softened his position, under certain conditions.
Authorized access to a selection of “liquid” cryptocurrencies for small investors
Therefore, the Hong Kong Securities and Futures Commission (SFC) is, second Reuters, in the process of selecting a batch of crypto-assets authorized for trading for small investors.
Some virtual asset platforms have over 2,000 products, but we don’t plan to allow retail investors to trade them all. We will define the criteria that will allow retail investors to trade [uniquement] the main virtual assets.
Julia Leung Fung-yee, Chief Executive Officer of SFC, in Asian Financial Forum January 11th
If no asset has been mentioned, the criterion used to integrate the white list is yours considerable liquidity. To this end, the SFC, according to its director, will publish a consultation document during the current quarter detailing the products and conditions that allow retail investors to trade cryptocurrencies.
Everything should be ready in June when the new licensing regime takes effect.
Hong Kong wants to become a crypto hub
Indeed, the regulatory body will dictate new rules for digital asset service providers. It will require crypto platforms to have adequate internal controls, risk management, and custodial arrangements in place to protect client assets. Cryptographic service providers will also need to take steps to prevent cybersecurity risks.
We aim to have a proper regulatory framework in place to protect the interests of all investors and make Hong Kong a hub for virtual assets. (…) If proper regulations are in place, the likelihood of an FTX-like meltdown will not occur in Hong Kong.
Julia Leung Fung-yee, Chief Executive Officer of SFC, in Asian Financial Forum January 11th
Initiative to revive cryptocurrency trading for individuals comes as Hong Kong Finance Secretary Paul Chan Mo-po reiterates territory’s ambition to become an international crypto hub. For him, the territory has regulations that “correspond to international norms and standards” and according to the observations reported per Bloomberg, “it will be a great place for cryptocurrencies, fintechs and other startups to set up shop in the new year.”