Hong Kong will allow retail traders to stake money on major crypto tokens money moguls

  • In Hong Kong, a plan was unveiled to allow ordinary investors to trade digital currencies such as bitcoin and ether.
  • In late October, Hong Kong took a pro-crypto stance as part of a larger effort to restore the city’s reputation as a financial hub.

In a policy shift that contrasts with actions in the United States, Hong Kong unveiled a plan Taking a significant step towards its ambition to become a crypto hub, to allow retail investors to trade digital currencies such as bitcoin and ether.

The regulator said in a consultation paper on February 20 that by providing measures including knowledge tests, risk profiles and appropriate risk limits, individual investors will be able to trade major currencies on exchanges registered by the Securities and Futures Commission.

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The names of the coins that would be accessible to regular investors were not specified.

The comment session from March 31 to April 31 aims to allow retail trading under the new cryptocurrency exchange licensing regime that will take effect from June 1.

According to an SFC spokeswoman, the Hong Kong-based platform is expected to list bitcoin and ether, the two largest digital assets by market value.

Hong Kong took a pro-crypto stance at the end of October last year, as part of a broader effort to re-establish the city’s credibility as a financial hub.

To develop a necessary regulatory framework that can attract businesses and protect investors, policymakers are drawing lessons from a wave of bankruptcies around the world, including last year’s $1.5 trillion digital asset crash and stock market crash. FTX.

The government has already allowed CME Group exchange-traded fund (ETF) ether and bitcoin futures trading, and this month saw the sale of digital green bonds for the first time.

New rules for cryptocurrency trading platforms

In other news, the Hong Kong Securities and Futures Commission (SFC) has released its draft regulations for virtual asset trading platforms. on Monday And now accepting public comments.

The notice states that any cryptocurrency trading platform, including existing ones, that wishes to apply for a license under the new regime, “will begin to assess and optimize their systems and processes in preparation for the new regime.”

Hong Kong still faces many challenges, including a downturn in the virtual asset sector that has resulted in thousands of job losses. After a turbulent 2022, the crypto markets have only partially recovered.

Businesses may be reluctant to invest their limited resources until the contours of Hong Kong’s political landscape are clearer.

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