Hong Kong has allowed retail investors to trade crypto under its new rulebook for the sector, accelerating efforts to develop a digital-asset center even as the industry and regulators clash in other Asian nations.
Tuesday, the Securities and Futures Commission (SFC) of the city presented the findings of a consultation on retail participation. Beginning on June 1, when a new licensing regime for virtual-asset platforms goes into effect, the agency will allow individual investors to purchase and sell larger tokens like bitcoin and ether.
Hong Kong positions itself as a global crypto hub
Hong Kong intends to reposition itself as a crucial crypto hub in the region by reopening retail trading. Given its relations with the People’s Republic of China, a historically anti-crypto nation, experts suggest that the new crypto rules could serve as a playbook for the PRC to adopt.
The regulatory requirements for trading platforms for virtual assets will encompass “suitable” onboarding procedures, disclosures, and other elements. Tokens that will be traded on these platforms will be required to meet a “minimum criteria” that will make retail investors less susceptible to market manipulation.
On June 1, platforms can begin applying for a license, while those “who do not plan to do so should proceed to an orderly closure of their business in Hong Kong,” according to a statement released by the SFC on Tuesday.