Updated on January 9, 2023 12:50 PM
In contrast to the city's scepticism of previous years and the ban in force in mainland China, a Bloomberg report claims that Hong Kong is moving toward a friendlier regulatory environment for cryptocurrencies with a plan to authorize retail trading.
According to the report, which claimed persons with knowledge of the situation, Hong Kong is leaning toward pro-crypto rules that will create an obligatory licensing regime for all crypto platforms. According to reports, the program will go into force in March 2022, when exchanges will be authorized to offer retail trading to their customers.
The report stated persons with knowledge of the situation who declined to be identified because the material is private, a proposed obligatory licensing program for cryptocurrency platforms scheduled to go into effect in March 2019 will permit retail trading. Regulators will take action to help the listing of well-known tokens on retail exchanges after conducting a public consultation. Variables like liquidity, market value, and participation by outside crypto indices will be considered during the listing process. The people, regulators want to permit listings of more significant tokens but won't support particular coins like Bitcoin or Ether. They said the specifics and timeline had yet to be determined because a public consultation must come first.
"Introducing mandatory licensing in Hong Kong is just one of the important things regulators have to do, they can't forever effectively close the needs of retail investors," claimed Gary Tiu, Executive Director of BC Technology Group.
At a fintech conference beginning on Monday, the government is anticipated to elaborate on its newly stated objective of developing a leading crypto hub. The initiative is part of a more significant effort to rehabilitate Hong Kong's reputation as a financial hub after years of political unrest, and Covid limitations caused a talent exodus.
Hong Kong's aristocracy desire to invest in cryptocurrencies
Wealthy investors in Hong Kong are actively looking to invest in digital assets, according to a new KPMG report. According to reports, more than 90% of family offices and high net-worth people are considering investing in bitcoin. The study's foundation was a poll of family offices that held between $10 million and $500 million in assets.
The broad view
Hong Kong's reputation as a financial centre has been harmed by years of political upheaval and issues with mainland China. With crypto-initiatives' aid, authorities hope to restore Hong Kong's standing in the business community.
The Securities and Futures Commission of Hong Kong still needs to make clear how it feels about these events.
On October 26, Arthur Hayes, the former CEO of BitMEX, wrote a blog post explaining Hong Kong's involvement in the upcoming bull run in cryptocurrency. According to Hayes, China will determine if the next bull run occurs. Hayes further asserted that by serving as a proxy, Hong Kong could be instrumental in persuading China to accept the cryptocurrency business.