The Hong Kong Securities and Futures Commission (SFC) has taken an important step towards comprehensive cryptocurrency regulation in the region by concluding its consultation on the regulation of cryptocurrency exchanges. The new regulations focusing on investor protection and risk management will take effect from 1 June. With this development, various Chinese coins have taken a leap. Here are the details…
Moves for cryptocurrencies came from Hong Kong
During the one-month consultation process, the SFC received a total of 152 public comments on the proposed regulatory rules. The majority of the opinions expressed were in favor of licensed exchanges that serve individual investors. This demonstrates the growing interest and acceptance of cryptocurrencies among retail investors in Hong Kong. An important aspect of the new regulations relates to listing requirements for cryptocurrencies on exchanges. The SFC requires listed stocks to have a high market capitalization and be included in at least two independent indices. As a result, cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) that meet these criteria, including both the Nasdaq and Bitwise indices, can be listed on Hong Kong stock exchanges.
According to the requirements of the Hong Kong government, the tokens purchased by retail investors need to be included in the two major indexes, which is the minimum requirement, so the following tokens are the tokens that may be listed in the first batch of Hong Kong compliance… https://t.co/8fg3Cl7P7X pic.twitter.com/fobAHUQjGa
— Wu Blockchain (@WuBlockchain) May 23, 2023
To ensure investor protection, the SFC has also imposed restrictions on stablecoin use until the expected stablecoin regulations between 2023 and 2024 come into effect. This precautionary measure aims to protect investors from potential instability in the value of stablecoins. This, in turn, can hinder their ability to use them. In addition, the SFC prohibits licensed exchanges from offering interest rate or lending services. This limitation aims to reduce the risks associated with leverage and lending in the cryptocurrency market. Also, under the new regulations, “gifts” related to the trading of certain stocks, including airdrops, are not allowed.
Hong Kong accelerates its work for cryptocurrencies
SFC CEO Julia Leung emphasized that comprehensive cryptocurrency regulations in Hong Kong are aimed at protecting investors and managing risks consistently across businesses and industries. SFC’s goal is to foster sustainable industry development while supporting innovation in the cryptocurrency industry. Experts believe that Hong Kong’s new cryptocurrency regulations could serve as a test case for China’s future stance on cryptocurrencies. Hong Kong is positioning itself as a potential cryptocurrency hub.
Despite the challenges facing the cryptocurrency industry, such as the recent FTX bankruptcy, Hong Kong continues to demonstrate its willingness to explore opportunities in this space. Hong Kong has already taken steps to facilitate cryptocurrency adoption. In December of the previous year, Bitcoin and Ethereum Exchange Traded Funds (ETFs) were listed on the Hong Kong Stock Exchange, providing investors with regulated exposure to these digital assets.
Also, recent reports indicate that Greenland Financial Technology Group, a subsidiary of the Chinese state-owned company Greenland Holdings, plans to apply for a license to run a cryptocurrency trading business in Hong Kong. With the enactment of new cryptocurrency regulations, Hong Kong is poised to play an important role in shaping the future of cryptocurrencies while protecting the interests of investors and promoting responsible growth in the industry.
Chinese coins jump: Here are the most popular ones
So, how might this move by Hong Kong affect the crypto space? The fact that cryptocurrency regulations in the country encourage the use of crypto and companies offer crypto services in a comfortable way points to a positive development for Chinese coins. So, which are these Chinese coins? In the list below, you can see popular Chinese coins and country-related coins:
- neo (NEO)
- Cocos-BCX (COCOS)
- Vechain (VET)
- Conflux (CFX)
- Alchemy Pay (ACH)
- Filecoin (FIL)
- IRIS (IRIS)
- Flamingo Finance (FLM)
- Highstreet (HIGH)
- Measurable Data Token (MDT)
- SelfKey (KEY)
- Linear Finance
- dForce (DF)
- Barley (ARPA)
- Phoenix (PHB)
- Ontology (ONT)
- IOST (IOST)
- Tron (TRX)
- Eos (EOS)
- LeverFi (LEVER)
- Sui Network (SUI)
- The Sandbox (SAND)
- OKx (OCD)
- BitDAO & Mantle (BIT)
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