Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
- Exchanges may operate legally, but investors encounter significant regulatory limitations.
- The area has recently recognized cryptocurrency as property following a court decision.
Hong Kong appears to be progressing towards its ambition of becoming a hub for the cryptocurrency sector. The Securities Futures Commission (SFC) of the region is anticipated to unveil guidelines for regulating cryptocurrency exchanges in May 2023.
The financial regulator launched a similar initiative for public feedback last year. During the public consultations aimed at determining the best methods for providing retail investors access to cryptocurrencies, inquiries were made regarding the potential issuance of cryptocurrency exchange-traded funds (ETFs) in the region.
Related Posts
Establishing Clear Regulations
Over 150 stakeholders contributed their insights during SFC CEO Julia Leung’s confirmation of the licensing regime’s consultation process. The upcoming regulations will be beneficial for crypto trading platforms that may ultimately cater to regular investors.
This is expected to come into effect on or around June 1st. While exchanges may operate legally in Hong Kong, investors face significant regulatory limitations. Individuals with a net worth of less than HK$8 million (approximately $1 million) fall into this category.
Furthermore, once the regulations are established, reputable exchanges will be permitted to offer trading of Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies to retail traders. So far, the Hong Kong SFC has only authorized two cryptocurrency exchanges: Hashkey and OSL.
Additionally, Hong Kong appears to be making progress towards becoming a prominent cryptocurrency trading center. The region has recently recognized cryptocurrency as property following a court ruling. The community will be able to assess its status as a crypto hub in light of the upcoming industry regulations. With U.S. regulators closely examining the sector, Hong Kong seems to present an appealing destination for investors worldwide.
