Rumors circulating in the crypto community in recent days have finally been confirmed when Hong Kong admitted to considering allowing individual investors to trade large-cap coins.
As was Kyptos reported a few days ago, the crypto community is spreading rumors that China is about to reopen to crypto, starting with Hong Kong.
Although this is just an unconfirmed rumor and has encountered many negative comments, the market has still responded very positively. Many coins originating from China began to increase sharply, such as Filecoin (FIL) or Conflux (CFX), …
As of today, February 20, the above rumor turned into reality when the newspaper Bloomberg reports that the Hong Kong government is consulting on allowing individual investors to trade large-cap tokens.
Hong Kong outlined a plan to let retail investors trade digital tokens like Bitcoin and Ether, a major step towards its goal of becoming a crypto hub https://t.co/yiaD88HVHo
— Bloomberg Crypto (@crypto) February 20, 2023
Specifically, Hong Kong has outlined a plan to allow retail investors to trade Bitcoin (BTC), Ethereum (ETH) and a number of other major coins. This is an important step towards Hong Kong’s goal of becoming a major crypto hub.
Investors can trade on platforms licensed by the Securities and Futures Commission (SFC). Along with that are measures to protect investors such as risk warnings, knowledge checks, review and risk limits, etc.
Regulators did not specify which coins. However, the review criteria is that the coins must be in at least 2 indexes that are accepted by reputable data providers.
The deadline for this policy consultation to be discussed and approved is March 31, 2023. If approved, the new policy will take effect from June 1. The SFC spokesperson further added that, if approved, BTC and ETH will most likely be listed on Hong Kong-licensed crypto exchanges.
Contrary to the US crackdown on crypto, Hong Kong began to “pivot” to cryptocurrencies from October 2022 with a plan to legalize cryptocurrency trading. By November, Hong Kong announced plans to launch a mainstream cryptocurrency ETF. These efforts aim to return Hong Kong to its role as a global financial hub.
Also, as TRON founder Justin Sun puts it: China is seeing Hong Kong as a place to experiment with crypto. A new set of positive changes for crypto can be seen in the key Asian market.
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