Bitcoin saw a modest bump following theย latestย information that Hong Kong will be relaxing cryptocurrency trading. Nonetheless, so far, the OG digitalย currency looks set for a less-than-exciting May. From a regulatory standpoint, Hong Kong isย still a tough jurisdiction for cryptocurrency in numerous ways. Partly becauseย ofย pressure from mainland China.
BTCโs price has pumped in reaction to theย latestย information that Hong Kong is taking a pro- cryptocurrency direction, reportsย by a CNBC report. On Tuesday, Hong Kongโs 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%, reportsย by CoinMarketCap. Bitcoinย (BTC) has been struggling to break the $27,000 mark since last Thursday.
The worldโs oldest digitalย currency has followed negative trends for most of May. Despiteย theย factย that it isย still well over the approximately $16,500 it entered the year with.
Bitcoinย (BTC) likewise did not see a much-anticipated โPizza Dayโ 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 Bitcoinย (BTC) isย still seeing a prolonged period of dominance compared to other digitalย currencies, sitting over 45 percent since the beginning of March.
Bitcoinย (BTC) Approved for Retail Investing
Hong Kong has just finished a consultation period regarding the policy where they had received 152 written submissions.ย
โA wholeย lotย of bulkย of respondents agreed to our proposition to allow licensed trading platform operators to serve retail investors,โ read an official statement.ย
The regulatingย authority invited cryptocurrency corporations to register with them, but stressed those that wouldnโt should โproceed to an orderly closure of their business in Hong Kong.โ
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. Despiteย theย 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 Centralย Bank Chief Executive Eddie Yue stated that regulations โwill be tight.โ
โWe will let them create the ecologicalย system here, and that essentially brings manyย of excitement. Onย theย otherย hand, that doesnโt mean light-touch regulation,โ he informed the Bloomberg Wealth Asia Summit.
