Hong Kong Contemplates Legalizing Crypto Trading
According to Elizabeth Wong, who heads up the fintech arm of the Securities and Futures Commission, the authorities in Hong Kong are considering the possibility of introducing a bill that regulates cryptocurrencies in a manner that is distinct from the one that is already in place in China. Wong made this point while participating in a panel discussion that was organized by InvestHK. One of the steps that the Securities and Futures Commission (SFC) has done is to make it possible for individual investors to make direct investments in digital assets.
As Wong pointed out, this kind of activity would be a substantial departure from the position taken by the SFC over the course of the preceding four years, which does not allow the trading of crypto assets through centralized exchanges. The individuals who owned portfolios totaling a minimum of around one million dollars as of September of the preceding year are considered eligible investors. This percentage corresponds to approximately seven percent of the city's total population.
Wong emphasized that the cryptocurrency market has become more compliant over the course of the past four years, indicating that the time has come to revolutionize the position of the city regarding cryptocurrency. The executive was of the opinion that the current time may turn out to be an appropriate moment to have a careful understanding of the cryptocurrency ecosystem within the jurisdiction, and they expressed this viewpoint in the present tense.
This takes into account a policy that was published in January of this year with the intention of allowing service-providing platforms to trade certain derivatives that are related to cryptocurrency assets. Additionally, the regulatory agency has been looking into whether or not retail investors should be allowed to invest in cryptocurrencies via products such as exchange-traded funds.
Hong Kong has set a limit of $3.8 billion to discourage investment from overseas companies.
The respective news is being witnessed at a time when Hong Kong is introducing a fund of up to $3.8 billion worth to allure the foreign business entities back following a huge talent exodus that was caused by the stringent lockdowns as well as the haphazard political scenario. Hong Kong is hoping to allure the foreign business entities back following the massive talent exodus that was caused by the stringent lockdowns as well as the haphazard political scenario. In addition, the municipal government is formulating a plan to take advantage of developing technologies such as non-fungible tokens (NFTs) and the Metaverse in order to transform the area into a central location for the trading of overseas digital assets.