Breaking: Hong Kong Allows Retail Investors Trade Bitcoin, ETH, Other Crypto
Hong Kong will allow retail investors to trade Ethereum and other cryptocurrencies after enticing the crypto leaders to set up firms and exchanges.
Hong Kong is leveraging the clampdown on crypto in many leading economies to gain more dominance. The city’s initiative for a crypto hub attracts global cryptocurrency exchanges.
Hong Kong pushes up its crypto hub plan by enabling retail trading of cryptocurrency
Hong Kong Securities and Futures Commission is expected to announce the participation of retail investors in crypto on May 23, at a media conference. According to new agency rules, the authorities want retail investors to be able only trade top-tier cryptocurrencies.
Hong Kong adopts a progressive approach, introducing licenses and regulations for the crypto industry, while China, the U.S. and other countries restrict cryptocurrency. The city is planning to introduce a licensing system for virtual asset companies in May. Retail access will be available on June 1.
Lennix lai, CCO of OKX crypto exchange, said:
I expect that the outcome of the consultation will reflect the opinion of the digital-assets community, which is that compliant, safe and secure retail trading is an important aspect of a robust ecosystem of virtual assets.
In a paper of consultation published in February, a plan to allow retail investors to trade virtual assets licensed by SFC was announced. Investor protection is ensured by safeguards like knowledge tests, risk profile and reasonable exposure limits. Investors are also prohibited from trading crypto assets if they are not listed in two investible indices, both from reputable providers. One of these indexes must have experience in traditional finance.
Crypto Firms Move to Hong Kong
Hong Kong, despite the fact that crypto exchanges like OkX or Huobi are planning to apply for licenses, is leading the way in adoption.
HashKey’s OSL and BC Technology Group Co.’s OSL is the only licensed exchange in Hong Kong. HashKey Group intends to raise $100-200 million at a valuation of over $1 billion.
Ripple is now part of the eHKD Pilot Programme run by the Hong Kong Monetary Authority (HKMA). BitMEX announces BitMEX Hong Kong a dedicated service in compliance with Hong Kong Virtual Asset Service Providers (VASP) Regime.