Crypto Trading Step from Hong Kong
The Hong Kong Securities and Futures Commission (SFC) today proposed a loosening of rules that prohibit individual investors from buying and selling cryptocurrencies on licensed platforms.
The ban issue, which has been on the agenda in Hong Kong since last year, has become a topic of discussion as lawmakers pressured regulators to relax the rules. Legislators cited the demand for loosening the rules as investors were already trading crypto using unregulated exchanges outside the country.
On top of that, the Hong Kong regulator presented its proposal to unblock retail investors from trading crypto. On the other hand, the regulatory agency stated that crypto companies operating in Hong Kong must obtain a license from the Securities and Futures Commission by June 2024. It was reminded that companies that did not obtain a license could not continue their activities in the region after this date.
The Hong Kong Government has rolled up its sleeves to make the autonomous region an important hub in the crypto-asset space. In addition to this important development, Hong Kong Central Bank took an important step last week by issuing the world’s first tokenized green bond. With this project, the bank announced that it has raised close to $100 million in funding for clean energy technology and similar projects.
In its announcement paving the way for crypto trading for individual investors, the Hong Kong regulator stated that only large market cap cryptocurrencies will be allowed to be traded at the initial stage. In addition, crypto exchanges operating in the country were asked to explain which crypto derivatives products they will offer and why. This was interpreted as crypto derivative products that are currently banned in the country will also be allowed.
The Hong Kong regulator has had a conservative policy towards cryptocurrencies since 2018, limiting cryptocurrency trading on licensed exchanges to professional investors. Accordingly, investors with a portfolio worth at least $1 million were allowed to trade crypto in the country.
This new decision taken by Hong Kong towards the crypto sector has also attracted the attention of US-based crypto company bosses. The Gemini founder said that depending on this development, the next bull rally in cryptocurrencies will start from the east. Coinbase CEO Brian Armstrong said that the US risks losing its financial center status to Asian countries like Hong Kong.
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