Hong Kong launches retail-friendly rules for crypto exchanges
The Chinese finance hub is racing regulators around the world to lay down ground rules for crypto after high-profile failures like trading platform FTX, which led the United States to crack down on a sector worth more than $1 trillion. China has had a strict crypto ban since 2021, but in Hong Kong — which operates on a separate legal framework — trading has been allowed though unregulated, meaning individual investors resort to unlicensed platforms. The regulatory regime launched Thursday means that after a one-year transition period, all crypto exchanges in Hong Kong must be licensed, and will be able to take on retail clients.
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View Details »"(The sector) fundamentally is going to stay despite all the risks… These activities have to be allowed in a regulated way," the city's financial services and treasury chief Christopher Hui told AFP. Hong Kong's securities regulator said Thursday afternoon that it had «already received a handful of applications» and that the market is «generally supportive» of the regime. The new rules emphasise investor protection measures, like requiring exchanges to vet their clients and limit their risk exposure, as well as restricting trade to «large-cap» tokens such as bitcoin. Regional rival Singapore is heading in the opposite direction as it plans to curb retail participation in crypto.Crypto exchange OKX — founded in China but now based in the Seychelles — told AFP it was
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