Hong Kong’s financial regulator is set to roll out a new framework that will allow retail investors to trade crypto assets such as BTC and ETH, and will also include measures to protect investors.
The new guidelines are scheduled to begin in June 2023
Securities and Futures Commission (SFC) announce Conclusion of consultations related to the regulation of cryptocurrency exchanges and retail participation.
The proposed guidelines for cryptocurrency exchanges looking to operate in Hong Kong will be implemented on June 1, 2023.
According to the SFC, 152 respondents ranging from market participants to consulting firms and individuals submitted requests during the consultation process that began in February 2023 and ended in March 2023.
Most of the respondents welcomed the SFC’s proposal to allow retailers access to licensed crypto operators.
However, despite the implementation of the new regulatory framework set to begin in less than 10 days, the SFC must still give the green light to any company to serve retail investors.
The Hong Kong regulator stated that most of the existing cryptocurrency exchanges open to the public are not entities regulated by the SFC.
The announcement also stated that crypto companies wishing to comply with the new guidelines can apply for a license, and other companies unwilling to follow the SFC regulations should stop operating in Hong Kong.
“The comprehensive regulatory framework for virtual assets in Hong Kong follows the principle of ‘same business, same risks, same rules’ and aims to provide strong protection for investors and manage key risks. This will enable the industry to develop sustainably and support innovation.”
Julia Leung, CEO, SFC.
More cryptocurrency exchanges prefer Hong Kong
Hong Kong’s new approach to digital currencies has seen companies flock to the city, with companies such as Bybit, Huobi and OKX planning to apply for a license under the upcoming guidelines.
While the city is working to establish itself as a major cryptocurrency hub, other Asian countries continue to clamp down on cryptocurrency firms.
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As reported by crypto.news, Malaysian authorities have ordered Huobi to cease operations in the region, saying the company is not registered.
The Philippine Securities and Exchange Commission (SEC) has also issued a warning to investors against investing in Gemini’s recently launched derivatives trading project, claiming that it is not authorized by the regulator.