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Hong Kong Intends To Legalize Cryptocurrency Trading: Report

Wong added that such an initiative would be a significant departure from the SFC's prior four-year policy, which confined cryptocurrency trading on centralized exchanges to professional investors.

21 Oct 2022 By : COIN GABBAR
Hong Kong Intends To

Hong Kong is taking steps to reclaim its status as a worldwide cryptocurrency hub by announcing a number of regulatory proposals related to the crypto industry.

Hong Kong, a Chinese city and special administrative region, is eager to distinguish its crypto-regulating strategy from the blanket crypto prohibition in mainland China.

According to Elizabeth Wong, head of the Securities and Futures Commission's fintech unit, the Hong Kong government is considering introducing its own bill to regulate cryptocurrency in its own China-free way.

Wong stated during an interview with a local media outlet on Oct. 17 that one of the SFC's aims is to allow individual investors to directly participate in virtual assets.

Such an endeavor would be a substantial departure from the SFC's previous four-year policy, which has restricted crypto trading on centralized exchanges to professional investors, Wong noted. Individuals having a portfolio worth at least $1 million, or around 7% of the city's population as of September 2021, are eligible investors.

Wong stressed that the crypto industry has gotten more compliant over the last four years, implying that it is time for the city's attitude on crypto to alter, stating:

The SFC official also cited a few other regulatory steps aimed toward the growth of Hong Kong's crypto ecosystem, such as a guideline implemented in January that allows service providers to trade certain crypto-related derivatives. According to Wong, the regulator is also considering whether to allow individual investors to invest in crypto-related exchange-traded funds.

The latest announcement comes as Hong Kong launched a $3.8 billion fund on Oct. 19 to entice international firms back to the city following a large talent exodus driven by strict lockdowns and a tense political atmosphere.

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