Hong Kong is poised to permit retail investors to trade cryptocurrencies under new regulations, despite concerns following a market crash in 2022 and regulatory clashes across Asia. The city's Securities and Futures Commission (SFC) is expected to allow individual investors to trade larger cryptocurrencies like Bitcoin and Ether under suitable safeguards from next month. The move is part of a strategy to restore Hong Kong's status as a leading financial hub, with a licensing regime for digital asset platforms to be introduced on June 1. However, controversy surrounds the decision given the volatile nature of the cryptocurrency market and recent regulatory challenges faced by crypto firms in Malaysia and the Philippines. The SFC intends to implement safeguards, including knowledge tests, risk profiles, and reasonable exposure limits.
Comments