Hong Kong wants to become an international crypto hub even as jurisdictions like the US. cast a wary eye about the sector In June, a new licensing system expelled to regulate crypto exchanges that offer token trading like Bitcoin and Ether. The regime is part of Hong Kong's effort to attract new capital and talent to the city, after its reputation was tarnished by years of tough Covid-19 restrictions and a crackdown on political dissent. The initial reaction was largely positive from digital asset companies, but there was a lack of major investment commitments. The Hong Kong momentum appears to have silent backup of Beijing even as mainland China sticks to a cryptocurrency trading ban.
He new rules means that retail investors can trade coins on city-sanctioned exchanges Securities and Futures Commission. Hong Kong says its focus is high on consumer protection, with strict criteria on which virtual assets can be bought and sold. Some of the factors that platforms should consider when deciding which tokens to offer include how long a coin has been in circulation, its market capitalization, and average daily trading volume. The tokens must also be listed in at least two cryptocurrency indices from prominent institutions, one with a background in traditional finance. In addition, the SFC requires crypto firms to implement other security measures before accepting clients, such as assessing whether users have essential knowledge of digital assets before investing and setting trade or position limits "with reference to the client's financial situation." .
