The government of Hong Kong is set to permit crypto trading for retail investors, this is an official step towards legalizing cryptocurrency in the country.
On Monday, October 31, the Hong Kong government released a formal policy statement that will permit regional retail cryptocurrency trading. There have been some significant developments over the past week with Hong Kong hoping to become a prominent location for crypto operations in Asia.
The government stated that it has begun preliminary consultations so that “enough access” might be provided to the retail sector. Additionally, the city welcomed major crypto companies to investigate potential opportunities.
It’s interesting to note that the officials expressed openness to the notion of listing cryptocurrency exchange-traded funds (ETFs) under the heading of “sustainable and responsible development” of the region’s crypto sector. As they legalize smart contracts, they are also amenable to giving tokenized assets property rights.
The consultation guidelines on the stablecoin regulatory system will shortly be made available by the Hong Kong Monetary Authority. Paul Chan, the financial secretary, said:
“The policy statement explains in detail our vision and approach, regulatory regimes, thoughts on investors’ exposures, and our pilot projects to embrace the technological benefits and financial innovations brought by VA. Our policy stance on VA is now clearly communicated to the global markets and it serves to demonstrate our commitment and determination to explore financial innovations together with the global VA community.”
Crypto risks in Hong Kong
Hong Kong stated in another policy paper that it will be cautious about the hazards that cryptocurrencies pose to regular investors. They will also improve education and make sure that the appropriate regulatory mechanisms are in place.
The government also disclosed that it is looking into a number of pilot projects to determine whether employing digital assets is technologically feasible. This involves the creation of non-fungible tokens (NFT), the tokenization of green bonds, and the e-HKD.
The government has requested collaboration from members of the crypto business in order to bring forward comprehensive and balanced legislation. In order to realize crypto innovation, they are working together to make Hong Kong the world’s financial hub. Paul Chan, the financial secretary, said:
“The policy statement explains in detail our vision and approach, regulatory regimes, thoughts on investors’ exposures, and our pilot projects to embrace the technological benefits and financial innovations brought by VA”.
