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Trading Bans In Hong Kong Are Expected To Be Lifted As The City Embraces Crypto

Trading Bans In Hong Kong Are Expected To Be Lifted As The City Embraces Crypto

DateMay 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. 


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