Hong Kong is now contemplating changing its crypto trading requirements, in a way attempting to be different from China on the all-out crypto ban.
It is now planning to take action as it wants to attain the status of being a global cryptocurrency hub by introducing many legal initiatives that are related to the crypto industry.
Hong Kong doesn’t want to impose a blanket ban and is trying to change its approach towards regulation.
This will be accomplished by the Hong Kong government introducing its own bill to regulate cryptocurrency in a much more independent and liberal manner.
Elizabeth Wong, who heads the fintech unit at the Securities and Futures Commission (SFC), has confirmed the same.
The security regulators of Hong Kong are planning to reconsider their trading requirements so that investors will be able to directly invest in virtual assets.
By introducing this change, Hong Kong will be able to reverse the departure of digital asset firms and talents from the industry as it will be able to create a conducive environment for entrepreneurs in the industry.
Following the entry of talent, Hong Kong will be able to receive investments for the growth of the industry.
SFC To Bring Change In The Crypto Industry
The newest initiatives of SFC included allowing retail investors in order for them to directly invest into virtual assets.
Elizabeth Wong mentioned in a panel held by InvestHK, the South China Morning Post according to reports.
This is an initiative which indicates that SFC’s take on crypto has finally shifted to a much more positive one over the last four years.
The previous take on digital assets included restricting trading on centralised exchanges to professional investors.
The investors that could trade had to have a portfolio worth at least $1 million.
According to Wong, the crypto industry had become more compliant but there needed to be changed in order to help crypto trading gain more traction over time.
We’ve had four years of experience in regulating this industry … 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
Other Developments
The SFC plans on initiating a few more legal initiatives that will help the industry to develop in Hong Kong.
Another policy has been introduced in the month of January which will allow the service providers to sell certain crypto-related derivatives.
As mentioned above, regulators have also been rethinking whether they should allow retail investors to invest in crypto-related exchange-traded funds.
According to reports, the government of the Hong Kong special administrative region has introduced a bill which could propose establishing a regulatory regime for crypto providers.
The authorities have also planned that they would be open to introducing other emerging technologies such as non-fungible tokens and metaverse, which will give Hong Kong the status of an “international virtual assets center.”
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