Hong Kong has been making headlines in the crypto-verse lately. The country revealed that it was relaxing the existing crypto regulation in order to pave the way for retail investors. Now, further pushing ahead, the Securities and Futures Commission of Hong Kong would reportedly roll out a public consultation on enabling retail investors to potentially trade crypto.
A recent announcement from the regulator pointed out that this would include giving retail investors access to crypto through exchange-traded funds or ETFs. To support its overarching objective of “sustainable and responsible development” of the digital token sector, the city plans to list ETFs.
The government’s latest move comes as part of the city’s aim at rebuilding its reputation as a prominent financial center. The financial strain ticked off by COVID and political unrest could be in reversal mode now. Elaborating on the same, the Secretary for Financial Services and the Treasury Bureau Christopher Hui said,
“We recognize the increasing acceptance of VA as a vehicle for investment allocation by global investors, be they institutional or individual. Having these products launched in Hong Kong will provide the connectivity between VA players and traditional financial institutions, offering investors with well-designed products, hence promoting the overall growth of the sector in our market.”
In addition to this, the city affirmed that it “will be careful and cautious about the risks to retail investors.” By promoting adequate crypto regulatory arrangements and providing education, the government hopes to achieve this.
Will Hong Kong emerge as a crypto hub in Asia?
Over the last couple of years, the world watched as crypto tumbled down in Asia. China’s big crypto crackdown drove several out of the country. Singapore’s retail investors were seen urged to take a test before purchasing crypto. The government even advised investors to steer away from employing credit cards to pocket cryptocurrencies.
Amidst this, Hong Kong was making big moves with regard to crypto. As per recent reports, the city is expected to allow retail crypto trading in March 2023. Until then, the public consultation set up would aid the Hong Kong government in making a better judgment of legalizing crypto for retail investors.