More good news for Crypto enthusiasts from all over the world. Hong Kong’s crypto legislation plans to make Retail Crypto trading legal from March 2023, according to a Bloomberg report. This is in contrast to the Chinese Government’s regressive rules on Crypto. Hong Kong is one of the major financial hubs of the world and aims to be a Global Crypto centre. It has an independent financial and judicial system different from the Chinese Government.
Hong Kong crypto regulation is set to enforce a mandatory licensing program for Crypto platforms which enable retail trading. Regulators are planning to allow the listing of bigger tokens but will not endorse any specific crypto tokens.
The criteria to list these tokens will require an evaluation of the Market Capitalisation, liquidity and membership of third-party crypto indexes as per known sources.
Gary Tiu who is the executive director of BC Technology Group commented that
“Introducing mandatory licensing in Hong Kong is just one of the key things regulators have to do. And they can’t forever close the needs of retail investors”Source: Bloomberg
Hong Kong’s Crypto History
The city used to be a hub for several well-known Crypto exchanges. Many of these exchanges reportedly have close ties with China. In 2018, the city introduced a voluntary licensing regime which in effect restricted Crypto platforms to only service clients with portfolios greater than $ 1 million. This led to several exchanges decamping Hong Kong.
With the introduction of new regulations and pivoting towards a more retail-friendly environment, it is yet to be seen if Hong Kong can return to its old glory days.
Other Initiatives from Around the World
Hong Kong’s policies seem to be in line with where the rest of the developed world is moving. The United States Government has announced a guideline on Responsible Digital Asset development. UK’s parliament lower house on the other hand has voted in favour of recognising Crypto as a regulated financial asset. India also aims to table a technology-driven regulatory framework at the G20 summit next year. Investors who are apprehensive about Crypto trading because of regulatory uncertainty can take this news as a breath of fresh air as more countries and organisations are moving towards Crypto friendly regulations.
With organisations like Google adopting crypto for their cloud services and Meta completely overhauling their brand vision to be Web 3.0-centric, it’s clear that companies are also adapting at a rapid pace. These developments can act as a foundational stone for the masses to adapt to the changing internet landscape.