The brand new licensing program, scheduled to take off in June, will limit retail merchants in Hong Kong to “highly-liquid” digital property, based on the brand new CEO of Hong Kong’s Securities and Futures Fee (SFC), Julia Leung Fung-yee.
On the latest Asia Monetary Discussion board, Leung pointed out that many digital asset platforms have hundreds of merchandise. Nonetheless, the SFC government highlighted that they don’t seem to be planning to “permit retail buyers to commerce in all of them.” As an alternative, the SFC will arrange standards that permit retail merchants to solely commerce main digital property.
Whereas the SFC government didn’t present extra particulars as to which property will probably be obtainable for buying and selling, Leung talked about that these will probably be property with “deep liquidity.” When requested about Bitcoin (BTC) or Ether (ETH), the SFC government didn’t reply, however reiterated that “extremely liquid” property will probably be allowed.
Regardless of the constraints that will probably be positioned on retail buyers, Leung highlighted that they’re transferring to place Hong Kong as a digital asset hub. “We intention to have a correct regulatory framework to safeguard the curiosity of all buyers and to boost Hong Kong as a digital asset hub,” she stated.
The CEO additionally famous that correct regulation might forestall points, such because the collapse of the FTX alternate, from taking place in Hong Kong.
In a latest occasion, Hong Kong’s monetary secretary Paul Chan stated that many crypto corporations are requesting to arrange store in Hong Kong. The official highlighted that the federal government is doing its greatest to supply acceptable supervision to the crypto house and understand the potential of Web3 expertise.
Associated: Hong Kong brokers line up for SFC approval forward of recent digital asset buying and selling laws
Digital property have just lately been a scorching subject within the particular administrative area. On Jan. 5, a Hong Kong official floated the concept of turning the Hong Kong digital greenback right into a stablecoin. Wu Jiezhuang, a legislative council member, believes this might tackle dangers linked to digital property in Web3.