Hong Kong reportedly wants to legalize crypto trading
- Hong Kong’s securities regulator wants to allow retail investors to invest in crypto
- Hong Kong is considering introducing its own bill to regulate crypto in its own China-free way
- Hong Kong launched a $3.8 billion fund to attract foreign businesses
By launching a number of legal initiatives related to the cryptocurrency industry, Hong Kong is taking steps to reclaim its position as a global cryptocurrency hub.
Hong Kong, a Chinese city and special administrative region, is willing to differentiate its approach to crypto regulation from mainland China’s blanket crypto ban.
According to Elizabeth Wong, head of the fintech unit at the Securities and Futures Commission (SFC), the Hong Kong government is considering introducing a separate bill to regulate cryptocurrency in a manner independent of China.
The crypto industry has become more compliant in recent years
The South China Morning Post reported on October 17 that Wong stated that one of the SFC’s initiatives is to allow retail investors to “directly invest in virtual assets” during a panel held by InvestHK.
Wong noted that such an initiative would represent a significant shift from the SFC’s stance over the past four years, which restricted professional investors to crypto trading on centralized exchanges.
Individuals with a portfolio worth at least $1 million, or approximately 7% of the city’s population as of September 2021, are eligible investors. Wong emphasized that the cryptocurrency industry has become more compliant over the past four years, suggesting that the time has come to change the city’s position on crypto.
They think that this may be a good time to really think about whether we want to continue with this requirement for professional investors only, the company stated.
The SFC official also mentioned a few other legal initiatives aimed at expanding Hong Kong’s crypto ecosystem, such as a January policy allowing service providers to sell certain crypto-related derivatives.
Wong mentioned that the regulator has also looked into whether or not to allow retail investors to invest in crypto-related exchange-traded funds. The latest information comes as Hong Kong launches a $3.8 billion fund on October 19 to re-enter the city after a massive talent exodus caused by strict lockdowns and a tense political climate.
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Local authorities have tabled a bill to propose the establishment of a regulatory regime
A bill to propose establishing a regulatory framework for virtual asset service providers has been introduced by the local government, according to an official statement from the government of the Hong Kong Special Administrative Region.
In addition, the city’s authorities intend to transform Hong Kong into an “international virtual asset center” by embracing new technologies such as metaverse and non-fungible tokens.
Some reports claim that Hong Kong has been successful in adopting cryptocurrencies so far.
In a study published in July 2022 by Forex Suggest, a number of factors, including crypto ATM installations, pro-crypto regulations and startup culture, determined that Hong Kong was the nation best prepared for the widespread use of cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He has been a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralization, understanding the true potential of the blockchain.
