Trading Bans In Hong Kong Are Expected To Be Lifted As The City Embraces Crypto
May 25, 2023
Hong Kong is set to lift its ban on retail trading of cryptocurrencies as the city strives to restore its reputation as a prominent fintech hub. The Securities and Futures Commission( SFC) concluded its discussion on regulations for digital asset platforms and announced that certified entities will be permitted to offer services to retail investors.
The SFC will introduce measures to safeguard retail investors, including a thorough vetting process for tokens prior to their listing on exchanges. This decision represents a reversal of the restrictions implemented last year, and the new regulations are expected to take effect on June 1, 2023. The SFC's discussion period involved soliciting feedback from industry stakeholders, who largely welcomed the proposed requirements.
Based on the positive response, the controller has decided to grant licensed virtual asset providers the opportunity to serve retail crypto investors, marking a significant policy shift. still, smaller investors will need to fulfill certain obligations, similar as undergoing investor training and demonstrating awareness of implicit pitfalls.
The SFC emphasized the significance of good governance, robust onboarding processes, and transparent disclosure practices as part of the protective measures. While the SFC won't publish a list of approved means for retail investors, platform drivers are reminded of their legal obligations to insure compliance with Hong Kong's public offering regulations.
The decision to lift the retail trading ban comes in response to a flight of crypto startups to competing authorities, particularly Singapore, which have more favorable regulatory atmospheres.