Securities and Futures Commission (SFC), announced plans to propose a subset of tokens it would allow for retail investors’ trading.
According to Julia Leung Fung-yee, the new CEO of Hong Kong’s Securities and Futures Commission (SFC), the new licensing program, which is set to launch in June, will limit retail traders in Hong Kong to “highly-liquid” digital assets.
Leung noted that several digital asset platforms had thousands of goods at the most recent Asia Financial Forum. The SFC executive did emphasize, though, that they do not intend to “allow retail investors to trade in all of them.”
The SFC will instead establish requirements that restrict trading by retail traders to just significant virtual assets.Leung mentioned that these will be assets with “deep liquidity,” even though the SFC executive did not go into further detail regarding the specific assets that will be available for trading.
The SFC executive declined to comment when questioned about Bitcoin (BTC) or Ether (ETH), but he did reaffirm that “very liquid” assets will be permitted.Leung emphasized that efforts are being made to establish Hong Kong as a hub for virtual assets, despite the restrictions that would be placed on ordinary investors.
“We aim to have a proper regulatory framework to safeguard the interest of all investors and to enhance Hong Kong as a virtual asset hub,” she said.
The CEO added that effective regulation may stop problems like the demise of the FTX exchange from occurring in Hong Kong.Paul Chan, the financial secretary for Hong Kong, stated recently that numerous crypto companies are wanting to open offices there.
The representative emphasized that the government is making every effort to oversee the crypto industry appropriately and to fully utilize Web3 technology.
In the special administrative region, digital assets have recently gained a lot of attention. A Hong Kong official proposed the concept of making the Hong Kong digital dollar a stablecoin on January 5. A member of the legislative council named Wu Jiezhuang thinks this could solve dangers associated with digital assets in Web3
