Hong Kongs Bitcoin Boom Driven by Regulatory Change

Hong Kongs Bitcoin Boom Driven by Regulatory Change

Bitcoin price sees a 2% increase following Hong Kong’s announcement to allow retail trading of some crypto assets from June 1, but Hong Kong remains a tough jurisdiction for crypto in many ways, partly due to pressure from mainland China.

Bitcoin saw a modest bump following the latest information that Hong Kong will be relaxing cryptocurrency trading. Nonetheless, so far, the OG digital currency looks set for a less-than-exciting May. From a regulatory standpoint, Hong Kong is still a tough jurisdiction for cryptocurrency in numerous ways. Partly because of  pressure from mainland China.

BTC’s price has pumped in reaction to the latest information that Hong Kong is taking a pro- cryptocurrency direction, reports by a CNBC report. On Tuesday, Hong Kong’s Securities and Futures Commission announced it will allow retail trading of some cryptocurrency assets from June 1.

Hong Kong Drives Rally

Bitcoin pumped from around $26,800 at 1:10 a.m. UTC to $27,384 just over two hours thereafter. An increase of over 2%, reports by CoinMarketCap. Bitcoin (BTC) has been struggling to break the $27,000 mark since last Thursday.

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The world’s oldest digital currency has followed negative trends for most of May. Despite the fact that it is still well over the approximately $16,500 it entered the year with.

Bitcoin (BTC) likewise did not see a much-anticipated “Pizza Day” spike. Pizza Day celebrates the yearly anniversary of the 1st ever real-world transaction using Bitcoin, where 10,000 units were exchanged for two pizzas on May 22, 2010.

Still Bitcoin (BTC) is still seeing a prolonged period of dominance compared to other digital currencies, sitting over 45 percent since the beginning of March.

Bitcoin (BTC) Approved for Retail Investing

Hong Kong has just finished a consultation period regarding the policy where they had received 152 written submissions. 

“A whole lot of bulk of respondents agreed to our proposition to allow licensed trading platform operators to serve retail investors,” read an official statement

The regulating authority invited cryptocurrency corporations to register with them, but stressed those that wouldn’t should “proceed to an orderly closure of their business in Hong Kong.”

The notice likewise emphasized that the SFC has not approved any virtual investment trading platform. It likewise made clear that most available trading services are not regulated by the SFC. Exchanges in Hong Kong can likewise only list a small number of digital assets.

Hong Kong Still Strict on Crypto

The Chinese city has a history as a financial hub going back decades. Despite the fact, its approach to digital assets has been more cautious. No doubt influenced by the Government of the Chinese mainland, which has taken a very hard line against the sector.

On May 9, Hong Kong Central Bank Chief Executive Eddie Yue stated that regulations “will be tight.”

“We will let them create the ecological system here, and that essentially brings many of excitement. On the other hand, that doesn’t mean light-touch regulation,” he informed the Bloomberg Wealth Asia Summit.


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