Hong Kong regulators will soon decide which crypto tokens its citizens can invest in amid a series of new digital asset policies set to roll out this year.
The move is the latest crypto regulatory step taken by Hong Kong in a market that has a long association with a significant volume of digital asset trading.
Hong Kong to publish a consultation document
The Hong Kong Securities and Futures Commission (SFC) is preparing a list of crypto assets open to retail traders, Reuters reported on Wednesday. SFC’s new CEO Julia Leung Fung-yee said that these whitelisted crypto tokens will be highly liquid and considered safe enough for non-professional investors. Leung made the remarks during a panel session at the Asian Financial Forum held in Hong Kong on January 11.
“Some virtual asset platforms have more than 2,000 products, but we do not plan to allow retail investors to trade all of them,” Leung fixedand added: “We will establish the criteria that allow retail investors [only] trade with the main virtual assets”.
In addition to the list of approved tokens, Leung added that the SFC will communicate with the public about regulations for retail cryptocurrency trading. The approved list is part of a broader crypto regulatory push that will include the publication of a consultation paper before the end of Q1 2023. This regulatory push will also contain new licensing protocols for crypto exchanges and other virtual asset service providers. .
For Leung, the goal is investor protection. The chief regulator noted the massive price drop caused by the current bearish winter. CryptoPotato previously reported that investors in Hong Kong lost $50 million to crypto scams as of August 2022.
Asia Could Reignite Cryptocurrency Bull Run
The planned regulations for retail participants are the latest positive crypto development to emerge from Hong Kong. Stakeholders in the city-state have long declared the goal of turning it into a crypto hub in the next bull run.
BitMEX co-founder Arthur Hayes noted in October 2022 that the bull market will return when China and Hong Kong “love crypto.” At the time, Hong Kong financial officials aimed to recapture the city’s previous crypto-friendly stance.
A series of strict crypto measures in the past two years dampened enthusiasm for the asset class in Hong Kong. This led to countries like Thailand and Singapore becoming home to various crypto projects and leading the adoption in Asia.
Binance Free $100 (Exclusive) – Use this link to sign up to receive $100 free and 10% off your first month’s fees for Binance Futures (terms).
PrimeXBT Special Offer – Use this link to sign up and enter the code POTATO50 to receive up to $7,000 on your deposits.
