Hong Kong licensing program will affect retailers
Hong Kong licensing program will affect retailers
2023.01.11 08:42
Hong Kong licensing program will affect retailers
By Tiffany Smith
Budrigannews.com – According to Julia Leung Fung-yee, the new chief executive officer of Hong Kong’s Securities and Futures Commission (SFC), the new licensing program will limit retail traders in Hong Kong to digital assets that are “highly liquid.” It is anticipated that the program will begin in June.
Leung made the observation that numerous digital asset platforms offer tens of thousands of products at the most recent Asia Financial Forum. The SFC executive, on the other hand, emphasized that they do not intend to “allow retail investors to trade in all of them.” Instead, retail traders will be permitted to trade only major virtual assets if the SFC establishes criteria.
Leung mentioned that the assets that will be available for trading will be those with “deep liquidity,” but the executive of the SFC did not provide any additional information regarding the specific assets. The SFC executive did not respond when asked about Bitcoin (BTC) or Ether (ETH), but he did say that assets that are “highly liquid” will be allowed.
Leung emphasized that they are moving to position Hong Kong as a virtual asset hub despite the restrictions that will be placed on retail investors. She stated, “We aim to have a proper regulatory framework to enhance Hong Kong’s position as a virtual asset hub and protect the interests of all investors.”
The CEO also mentioned that Hong Kong could avoid problems like the FTX exchange’s collapse with proper regulation.
At a recent event, the financial secretary of Hong Kong, Paul Chan, stated that numerous cryptocurrency businesses have requested to establish operations there. The official emphasized that the government is making every effort to realize the potential of Web3 technology and provide appropriate supervision for the cryptocurrency industry.
In the special administrative region, digital assets have recently become a topic of conversation. A Hong Kong official proposed making the Hong Kong digital dollar a stablecoin on January 5. Legislative council member Wu Jiezhuang believes this could address Web3’s digital asset-related risks.
