According to a recent report, Hong Kong is ready to announce its plan to allow retail crypto traders to engage in cryptocurrency trading. The Securities and Financial Commission (SFC) is anticipated to introduce this fresh scheme, which includes adequate safeguards for investors, through a revised rulebook for crypto.
About the New Crypto Regulations
Starting June 1st, regular investors will have the opportunity to trade in some renowned cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) following the latest guidelines. Hong Kong was a central hub for digital currencies, with many major platforms originating there before branching out into other markets.
Previously, cryptocurrency trading in Hong Kong was restricted to institutional investors with a minimum of $1 million in capital due to strict crypto regulations. Consequently, the other traders had a hard time keeping up the rapidly changing crypto environment.
However, the Hong Kong financial regulator, SFC, plans to restore the it’s former glory by enabling all retail investors to trade major tokens, including Bitcoin (BTC).
The report indicates that the approval for these new regulations, which has been under discussion for quite some time, is expected to be granted soon. The licensing system for cryptocurrency companies is scheduled to be launched in May, and retail traders will be able to access it from June 1, as per the SFC’s announcement.
Hong Kong Aims to become Crypto Hub
Hong Kong is striving to establish itself as the premier cryptocurrency hub in Asia. The country is wholeheartedly embracing digital currencies and enforcing a licensing scheme for Virtual Asset Service Providers (VASP), specifically crypto exchanges within its borders. The new regulatory regime is set to go into effect on June 1st.
This proposal has been made to provide access to crypto trading for retail investors, provided they fulfill some specific requirements. These requirements may involve undergoing evaluations of their knowledge and risk tolerance, and implementing limits on their trading exposure.
The Securities and Futures Commission (SFC) has also gradually eased its approach, permitting more retail traders to participate in trading crypto ETFs and derivative products since the previous year.
