Hong Kong has taken a big step towards crypto trading with the aim of having more say in the crypto industry.
The cryptocurrency industry has started the new year pretty quickly. While the wounds of the FTX and Terra crises experienced last year were healed, a serious increase was observed in the pressure of the regulators on the sector. In particular, US regulators are working hard to regulate cryptocurrencies quickly. In the midst of all these processes, Hong Kong has taken a big step towards crypto trading with the aim of becoming a center of interest in the crypto industry.
Hong Kong Solidifies Its Planning For Crypto Trading
The Hong Kong regulator has taken a step towards crypto trading by retail investors in a consultation report it has released.
According to this consultation report, individual investors will be able to trade larger coins on exchanges licensed by the Securities and Futures Commission, in light of the necessary precautions and conditions.
This consultation on the Hong Kong side will end on March 31. The purpose of this consultation will be to allow retail trading in the form of new licensing for crypto exchanges on June 1. An expert on the subject stated that Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, are likely to be listed by Hong Kong platforms.
Hong Kong has taken several steps in the past year to have a reputation and a say in cryptocurrencies and blockchain. As part of these efforts, it takes an approach that will protect investors and care about cryptocurrency trading.
The Hong Kong regulator has made it a condition that measures such as knowledge testing, risk profiles and reasonable limits on risk exposure are required for transactions with major coins.
In addition, the regulator did not disclose which large-cap tokens will be allowed for retail investors. Instead, the regulator stated that cryptocurrencies must be included in at least two acceptable, investable indices from independent providers, and one of them must have experience in the traditional financial sector.
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