Will Hong Kong Legalize Crypto Trading?
- Hong Kong was recently ranked as one of the most prepared regions for mass crypto adoption.
- Hong Kong officials intend to introduce new crypto laws that will distinguish the region from mainland China.
- Although China has advanced in adopting a CBDC, the country is yet to welcome trading activities.
Hong Kong was one of the brightest spots for cryptocurrency until authorities outlawed such activities. However, the city is set to reclaim its spot in the crypto market and has taken several legal steps in line with its renewed ambitions.
Mainland China currently has a blanket ban on crypto trading activities. But recent reports show that Hong Kong, a special administrative region of China, is set to distinguish itself from mainland China. Elizabeth Wong, head of the fintech unit at the Securities and Futures Commission (SFC), recently revealed that authorities in Hong Kong are considering launching their own regulatory policies, which would cover trading activities in the region.
According to Wong, one of the SFC’s proposals is to enable retail investors to invest directly in virtual assets. Wong noted that such a move would be a huge departure from the SFC’s policy, which has limited professional investors from trading cryptocurrency on centralized exchanges. Wong stressed that over the past four years, the crypto industry has gotten more compliant, adding that it was time to rethink the city’s approach to crypto.
Wong was quoted as saying,
We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement.
Hong Kong is also working towards implementing more legislative actions aimed at fostering the growth of the cryptocurrency ecosystem. According to Wong, the SFC has also been considering whether to permit retail investors to invest in exchange-traded funds with a focus on cryptocurrencies.
Hong Kong officials have reportedly presented a bill to propose creating a legal framework for companies that offer virtual asset services. The city authorities also want to make Hong Kong an “international virtual asset center” by embracing new technologies like the metaverse and NFTs.