"Hong Kong has accepted crypto, but there are conditions!"
In order to implement new regulations that protect investors, the Securities and Futures Commission (SFC) in Hong Kong intends to launch a subset of tokens that allow retail investors to trade in cryptocurrencies.
The reform will replace the previous regime that has restricted crypto access to institutional investors with portfolios worth more than HK$8 million ($1 million) since 2018.
Please note that trading is expected to begin in the first quarter of this year, but digital assets offered to retail investors will be limited to highly liquidated assets*.
*Crypto assets can be easily bought or sold close to their value without any hassle
According to Julia Leung, the Chief Executive Officer (CEO) of the SFC mentioned that the new regime for virtual asset service providers (VASPs) will take a closer look at both crypto wallet providers and exchangers.
He added that the SFC has yet to determine which digital assets they should include or not.
Meanwhile, the head of the SFC's fintech unit, Elizabeth Wong in October last year had provoked Hong Kong's potential to re-enable retail investors to use digital assets.
Despite this, Wong noted that the government is in the process of considering a crypto regulation bill while the SFC is looking for individuals who invest directly into digital assets.
