• The Hong Kong Securities and Futures Commission (SFC) is consulting on allowing retail investors to invest in cryptocurrency.
• All cryptocurrency trading platforms operating in Hong Kong must be licensed before June 1.
• The SFC is requesting input on additional measures to safeguard the interests of individual investors.
Consultation Paper by SFC
The Hong Kong Securities and Futures Commission (SFC) has launched a consultation paper outlining the potential risks and benefits of allowing retail crypto investments. The proposal aims to provide investors with greater access to digital assets while ensuring appropriate investor protection measures are in place.
Regulation for Cryptocurrency Trading Platforms
In order to promote the healthy development of the cryptocurrency industry in Hong Kong, all cryptocurrency trading platforms operating in Hong Kong must be licensed before June 1. Any unlicensed platforms conducting cryptocurrency transactions after this date will be required to terminate their business operations within the region.
Retail Crypto Investments for Individual Investors
Individual investors would have the opportunity to trade more prominent cryptocurrencies on exchanges licensed by the SFC, subject to certain conditions. These digital currencies must be included in at least two acceptable, investible indexes from independent providers, one of which should possess experience in the traditional financial sector.
Interactive Brokers Expands Crypto Offerings
Interactive Brokers, a major electronic trading platform based in the US, recently unveiled its plan to broaden its crypto offerings in Asian markets. This move comes shortly before the announcement by the SFC regarding allowing retail crypto investments for individual investors.
Deadline For Consultation Period
The consultation period regarding these proposed measures will remain open until Mar. 31. Additionally, the SFC is requesting input on what additional measures need to be implemented in order to safeguard the interests of individual investors.