HK considers direct retail participation in virtual assets

Hong Kong's Securities and Futures Commission (SFC) is considering allowing retail investors to directly invest in virtual assets amid a talent exodus hollowing out the city's crypto industry. The Hong Kong government is distinguishing its approach from the crypto ban on the mainland, but it has still faced pushback over a lack of regulatory clarity. Elizabeth Wong, director of licensing and head of the fintech unit of SFC, said the “one country, two systems” principle “forms the basic foundation to Hong Kong’s financial markets”, and the fact that the city can introduce its own bill to regulate cryptocurrencies “shows just how separate Hong Kong is from the mainland.” Wong said that would mark a shift from the SFC’s stance over the past four years, which limits crypto trading on centralised exchanges to professional investors.