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Hong Kong has made its intention clear. It wants to re-establish itself as the digital asset hub of Asia. The city has announced various plans to attract crypto firms and investors to its shores. Its latest outlines a plan to allow retail investors to trade digital tokens such as Bitcoin and Ether.
The Strait Times reports Hong Kong is taking a significant step toward becoming a crypto hub. In contrast to the crackdown on crypto in the United States, Hong Kong has outlined a plan to let retail investors trade digital tokens such as Bitcoin and Ether. In a consultation paper published on Monday, regulators said individual investors would be allowed to trade larger coins on exchanges licensed by the Securities and Futures Commission (SFC).
Regulators added that this would only occur amid safeguards such as knowledge tests, risk profiles, and reasonable exposure limits. The regulator has not yet announced which large-cap tokens will be available to retail traders. However, the coins should be included in at least two acceptable, investible indexes from independent providers, of which one should have experience in the TradFi sector.
As it stands, Hong Kong’s current regime for cryptocurrency exchanges is voluntary and restricts clients with portfolios of at least $1.4 million. The only two exchanges permitted to operate are HashKey Group and BC Technology Group’s OSL bourse.
A spokesperson said that the consultation period would end on March 31, with the objective of allowing retail trading to commence within the new licensing regime by June 1. As Bitcoin and Ether are the two coins with the largest market capitalization, they will likely be listed by Hong Kong platforms.
Hong Kong Gets a Subtle Nod from Mainland China
Mainland China has severely cracked down on cryptocurrencies but seems to be taking a softer approach to Hong Kong’s aspirations of becoming a crypto hub. Cointelegraph reports that Beijing officials have not opposed Hong Kong’s goals as severely. Reports by Bloomberg indicate that representatives from the China Liaison Office have been making frequent trips to Hong Kong crypto meetings to understand the city’s plans. Officials have reportedly been friendly regarding the matter, which is being perceived by local crypto businesses that Beijing may be open to using Hong Kong as a testing ground for cryptocurrencies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.