Key Points:
- Hong Kong is set to announce that it will allow retail investors to trade cryptocurrencies under new rules for the sector.
- Individual investors are expected to be able to trade tokens like BTC and ETH starting next month with proper safeguards in place.
- This is one of the efforts to help Hong Kong become a new crypto hub.
Hong Kong will announce that retail investors can trade cryptocurrencies under new rules for the digital asset industry to accelerate plans to develop a new crypto hub, according to Bloomberg.
The city’s Securities and Futures Commission will detail the conclusions of a consultation on retail participation at its briefing Tuesday. The agency is expected to comply with its plan to allow individual investors to trade more significant tokens like Bitcoin and Ether starting next month with appropriate safeguards. The press conference will be held at 4:15 (UTC+8) today.
In February, Hong Kong proposed a welcome set of rules to regulate crypto-related activities. Under the new regulatory regime, retail investors can trade certain digital assets on licensed exchanges, replacing the 2018 framework that restricted trading only to recognized investors.
The city is also paving the way to legalize stablecoins. A startup backed by popular exchange KuCoin and issuer USDC Circle recently launched an offshore yuan-pegged stablecoin (CNH), the currency first of its kind in Mainland China.
To create an enabling environment for web3 businesses, the city facilitates communication between banks and crypto startups, many of which are scrambling to find alternatives in the wake of the crisis of Silvergate Bank.
Meanwhile, the tightening of regulation in the United States following the FTX boom has some consequences. US legislators, especially the SEC, are constantly taking legal action against crypto companies. In the past, several US banks played a crucial role in linking the traditional and crypto worlds, but that link has now been broken, which presents an excellent opportunity for Hong Kong to step up.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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