Hong Kong to Allow Retail Crypto Trading Beginning in March 2023

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Last Updated on October 30, 2022 by Bitfinsider

Bloomberg reported on Thursday, citing sources familiar with the situation, that Hong Kong is easing its tight cryptocurrency regulations in order to allow retail crypto trading.

In March of next year, a licensing requirement for sites that facilitate retail bitcoin trading will be implemented.

In addition, officials are attempting to permit retail exchanges to list major cryptocurrencies such as bitcoin (BTC) and ethereum (ETH). The listing criteria will likely include the token’s market capitalization, liquidity, and participation in third-party crypto indexes.

The executive president of digital asset financial services firm Hashkey, Michel Lee, noted that Hong Kong has been attempting to establish an all-encompassing crypto regime, noting tokenized stocks and bonds as a component that may become more significant in the future. “Trading digital assets by itself is not the objective. The true objective is to expand the ecology, he was reported as saying.

The Securities and Futures Commission (SFC), Hong Kong’s leading financial regulator, implemented a voluntary licensing framework in 2018. It banned crypto trading platforms to clients with at least HK$8 million ($1 million) in investable assets. Only two companies, BC Technology Group and Hashkey, were allowed, as a result of the stringent legislation.

Elizabeth Wong, director of licensing and head of the SFC’s fintech branch, stated last week, “We’ve had four years of experience regulating this business. We believe that now is a good moment to carefully consider whether we will continue to require professional investors solely.” She stated that Hong Kong might also permit exchange-traded funds (ETFs) to provide exposure to prevailing crypto assets.

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