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The director of licensing and head of the fintech unit of Hong Kong’s Securities and Futures Fee (SFC) has confirmed that the regulator is contemplating permitting retail buyers to speculate straight in crypto belongings. “We’ve had 4 years of expertise in regulating this trade … We predict that this can be really a great time to actually think twice about whether or not we’ll proceed with this skilled investor-only requirement.”
SFC Director on Crypto Regulation in Hong Kong
Elizabeth Wong, director of licensing and head of the fintech unit of Hong Kong’s Securities and Futures Fee (SFC), talked about cryptocurrency regulation throughout a panel dialogue held by Make investments HK on Monday, South China Morning Put up reported.
She defined that the regulatory surroundings for crypto in Hong Kong is totally different from in mainland China. Emphasizing that Hong Kong can introduce its personal invoice to manage cryptocurrencies, she burdened that it “exhibits simply how separate Hong Kong is from the mainland.”
The director confirmed that the SFC is at the moment contemplating permitting retail buyers to “straight make investments into digital belongings.” Over the previous 4 years, the regulator has taken the stance of limiting crypto buying and selling on centralized exchanges to skilled buyers, that are people with at the least HK$8 million (US$1 million) in liquid belongings, the publication conveyed.
Noting that the crypto trade has turn out to be extra compliant, the SFC director mentioned:
We’ve had 4 years of expertise in regulating this trade … We predict that this can be really a great time to actually think twice about whether or not we’ll proceed with this skilled investor-only requirement.
The federal government of Hong Kong has been rising efforts to lure again fintech corporations that left town because of strict laws.
The SFC launched a regulatory framework for crypto buying and selling platforms in November 2019. Centralized exchanges that present crypto buying and selling companies and intend to supply buying and selling of at the least one safety token could apply to the SFC for a license. “The licensee should solely present companies to skilled buyers,” the regulator clarified. In December 2020, the SFC issued its first license to a digital asset buying and selling platform. On the time of writing, OSL Digital Securities Ltd. is the one licensee listed on the regulator’s web site.
Wong additional famous that the SFC has relaxed some necessities to permit retail buyers to spend money on crypto belongings over the previous yr and the regulator can also be reviewing guidelines on whether or not to permit retail buyers to spend money on exchange-traded funds (ETFs) with crypto publicity.
The SFC will search public feedback on permitting retail buyers to straight spend money on cryptocurrencies later this yr, the director revealed, including that Hong Kong will quickly introduce a mandatory licensing requirement for crypto buying and selling platforms.
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