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Development of rules for retail transactions
Julia Leung Fung-yee, CEO of Hong Kong Securities and Futures Commission (SFC), said on the 11th that Hong Kong authorities are preparing rules to allow individual investors to trade crypto assets (virtual currencies). South China Morning Post reported.
Fung-yee said that the SFC plans to issue a consultation document during the current quarter (January to March) regarding the issues and conditions under which individual investors can trade cryptocurrencies, as well as the licensing requirements for trading platforms. rice field.
Individual investors will only be able to handle “highly liquid” cryptocurrencies, he said.
Some cryptocurrency exchanges offer more than 2,000 tokens, but have no plans to allow retail investors to trade all of them.
It will set the standard for retail investors to trade major cryptocurrencies.
At this time, it is not clear which stocks will be allowed to trade.
Currently, the SFC is piloting cryptocurrency trading, only allowing it to professional investors with bank assets of around ¥140 million (HK$8 million). After the rule is enacted, it will be open to other retail investors under certain conditions.
Fung-yee also mentioned that the cryptocurrency price plummeted in 2022, leading to the collapse of the old Terra ecosystem and the bankruptcy of FTX.
“With proper regulation, a bankruptcy like FTX would not happen in Hong Kong,” he said.
What is the Securities and Futures Commission of Hong Kong (SFC)?
The authority that regulates the securities and futures markets in Hong Kong. Its purpose is to ensure that the market is operated fairly and efficiently and to protect investors.
Cryptocurrency Glossary
VASP licensing system passed
The Hong Kong government is implementing policies to boost the development of the cryptocurrency industry.
Hong Kong’s Legislative Council (Parliament) passed a law in December to introduce a licensing regime for virtual currency service providers (VASPs).
The new regulations will require cryptocurrency exchanges to have internal controls, appropriate custodian arrangements, cybersecurity and more to protect customer assets. It also imposes requirements such as record keeping and customer risk review.
The Secretary of the Treasury, Paul Chan, also emphasized once again on the 9th that Hong Kong aims to become a hub for cryptocurrencies.
Hong Kong has a robust regulatory framework that is consistent with international norms and standards, making it a favorable environment for cryptocurrency companies to locate. Already, many tech companies and hi-tech start-ups looking to set up offices or list in Hong Kong have contacted the Hong Kong government, he said.
Also. In order to explore the introduction of virtual currency, we are conducting many pilot projects, and plan to tokenize government-issued green bonds (bonds issued for the purpose of improving the environment) and raise funds from institutional investors. I also reveal that there is.
Relation: “Hong Kong as the center of virtual currency” Emphasized by Finance Secretary
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