Hong Kong May Allow Retailers In Crypto Trading
On February 20th, Hong Kong’s regulator proposed relaxing rules prohibiting retail investors from purchasing crypto tokens from licenced platforms.
The ban had sparked debate in the city legislature, with lawmakers last year urging the regulator to relax the rules because investors were already using offshore and unregulated platforms such as FTX to place trades.
The regulator also stated that all crypto trading platforms operating in Hong Kong must be approved by the Securities and Futures Commission by June 2024 or face closure. The SFC “will not hesitate to take enforcement action,” according to a new consultation.
According to the regulator, only the largest tokens will be available to retail traders. The consultation addresses token admission requirements, stating that “eligible large-cap virtual assets” must meet certain market criteria issued by at least two independent index providers.
(With inputs from Shikha Singh)
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