Hong Kong to allow retail traders to put money on larger crypto tokens
In a policy shift that contrasts with a crackdown in the United States, Hong Kong unveiled a plan to allow retail investors to trade digital currencies like Bitcoin and Ether, taking a significant step towards its ambition of becoming a crypto hub.
Providing measures including knowledge tests, risk profiles, and appropriate exposure limits are put in place, individual investors would be allowed to trade larger currencies on exchanges registered by the Securities and Futures Commission, the regulator said in a consultation document on 20 February.
The names of the coins that will be accessible to regular investors were not specified.
The goal of the March 31–April 31 comment session is to permit retail trading under the new crypto exchange licensing regime that will go into effect on June 1.
According to an SFC spokeswoman, Hong Kong platforms are expected to list Bitcoin and Ether, the two largest digital assets by market value.
As part of a larger initiative to reestablish the city’s credentials as a financial center, Hong Kong switched to a pro-crypto attitude at the end of October last year.
To develop a required regulatory framework that can attract businesses and safeguard investors, officials are hoping to draw lessons from last year’s $1.5 trillion digital asset crash and a wave of worldwide bankruptcies, including the collapse of the FTX exchange.
Exchange-traded funds (ETFs) trading in Bitcoin and Ether futures from CME Group are already permitted by the government, and this month saw the sale of the first-ever digital green bonds.
In other news, the Securities and Futures Commission (SFC) of Hong Kong released its draft regulations for virtual asset trading platforms on Monday and is now accepting
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