Hong Kong’s SFC Looking To Allow Bitcoin, Ethereum Retail Trading

Lavina Daryanani
Source: PayBito

Hong Kong’s Securities and Futures Commission officially released a statement on Monday chalking out its plan to allow retail investors to trade cryptocurrencies like Bitcoin and Ethereum.

According to the consultation paper released, retail investors will be allowed to trade top cryptocurrency assets on exchanges that are licensed by the agency. However, such virtual asset trading platforms will have to keep investor protection in mind. This means they have to tick boxes including exposure limits, risk profiles, etc.

Asserting the importance of the same, Julia Leung, the SFC’s Chief Executive Officer said,

“In light of the recent turmoil and the collapse of some leading crypto trading platforms around the world, there is clear consensus among regulators globally for regulation in the virtual asset space to ensure investors are adequately protected and key risks are effectively managed.”

Also Read: Hong Kong Welcomes 1st Bitcoin ETF

Other specifications

Without mentioning names of large-cap assets that individuals will be allowed to trade, the agency clarified that they should be listed on a minimum of two acceptable, investible indexes from independent providers. Notably, one among them should have had its feet immersed in the traditional financial sector.

The SFC highlighted that the consultation period will end on Mar. 31. It intends to green-light retail trading in the new licensing regime for crypto exchanges. As reported earlier, the same is set to come into effect in Q2, more specifically Jun. 1, this year.

According to the latest proposal, all trading platforms planning to apply for a license “should begin to review and revise their systems and controls to prepare for the new regime.”

According to Bloomberg, an SFC spokesperson said that Bitcoin and Ethereum will likely be listed by Hong Kong platforms.

Also Read – Hong Kong: Bill Involving Crypto In Effect From June 1, 2023

Hong Kong and cryptocurrency

An array of cryptocurrency and blockchain-related developments have taken place in Hong Kong of late. Just last week, the government released its first tokenized green bond of 800 million Hong Kong dollars [US $101 million].

Also Read: Hong Kong Welcomes 1st Bitcoin ETF

Prior to that, the region opened doors to its very first BTC exchange-traded funds [ETF]. Two ETFs tracking U.S. listed crypto futures veered into Hong Kong in December last year. They’re reportedly managed by CSOP Asset Management.

Alongside, Financial Secretary Paul Chan asserted last month that Hong Kong will be a great place for crypto and fin-tech startups to operate from. He also said that the region remains committed to becoming a crypto hub. Thus, the latest initiative taken seems to be a step in the said direction.

Also Read – Crypto: Hong Kong’s SFC To Pick Out Tokens For Retail Trading