- Hong Kong introduces new regulations for cryptocurrency trading, and only a select few made the cut.
- Bitcoin, Ethereumย (ETH), and Litecoin are amongย the approved cryptoย tokens for trading.
- The criteria for approval include listing on at least two major indices.
Althoughย while the rest of Asia is cracking down on cryptocurrency, Hong Kong is taking a different stance. After new regulations come into effect, retail investors can now trade select cryptocurrency tokens.ย
New regulations by the cityโs Securities and Futures Commission (SFC), coming into effect on June 1, 2023, will permit retail investors to trade certain cryptocurrency cryptoย tokens. Nonetheless, these cryptoย tokens must meet certain stringent criteria to be eligible for trading.ย
Upย toย now, only 10 cryptocurrency cryptoย tokens have made the cut, including Bitcoin, Ethereumย (ETH), and plentyย of trending altcoins.ย
Hong Kongโs Criteria for Cryptocurrency Trading
To be allowed for retail trading, the cryptocurrency cryptoย tokens have to satisfy the SFCโs stringent regulations. For one, cryptoย tokens requireย a minimum of 12 months of regulatory compliance. In that period, there should be no criminal states against the projects responsibleย for these tokens.ย
On the other hand, the cryptoย tokens have forย listing on at least two investible indices from major independent financing corporations. Cryptoย Tokens that doย not meet these requirements wonโt be be eligible for trading.
The cryptoย tokens are: Bitcoin, Ethereum, Litecoin, Polkadot, Bitcoinย (BTC) Cash, Solana, Cardano, Avalanche, Polygon, and Chainlink.ย
These cryptoย tokens have varying degrees of listing across major indices, including Galaxy, 21 Shares, Bitwise, Nasdaq, and WisdomTree.ย
Why Hong Kong Wonโt Allow Stablecoins
Interestingly, the SFC asย ofย now has no intendsย to allow cryptoย stablecoins, citing the ongoing uncertainty surrounding them.ย
This new move marks a wholeย lotย of development in Hong Kongโs digitalย currency approach. With this selective approach, Hong Kong hopes to strengthen its position the worldwide cryptocurrencyย market while maintaining strict regulatory standards.
The other side
- The stringent criteria for cryptoย token selection mean that a number of cryptocurrencies wonโt be be accessible to retail investors in Hong Kong.
- The exclusion of cryptoย stablecoins from the approved list canย potentially be seen as a missed opportunity, given their growing popularity.
Why This Matters
For retail investors in Hong Kong, this development offers aย chance to jump into cryptocurrency. The increased adoption will likewise positively affect the cryptocurrency markets as a whole.ย
Read more about Hong Kongโs newย cryptocurrency regulations:
Cryptocurrency Investors Can Trade Under New Hong Kong Regulations from June 1stย
Read more about the latest developments in the BlockFi saga:ย
BlockFi Restructuring Strategy Slammed by Unitedย States Courtย
