Hong Kong regulators will soon decide which crypto tokens their citizens can invest in amid a series of new digital asset policies coming this year.
The move is the latest crypto regulatory move by Hong Kong in a market that has long been associated with a high volume of digital asset transactions.
Hong Kong will publish a consultation document
Hong Kong’s Securities and Futures Commission (SFC) is preparing a list of crypto assets open to retail traders, Reuters reported Wednesday. New SFC CEO Julia Leung Fung-yee said that these whitelisted crypto tokens will be highly liquid tokens deemed safe enough for non-professional investors. Leung made the comments during a panel discussion at the Asian Financial Forum held in Hong Kong on Jan. 11.
“Some virtual asset platforms have over 2,000 products, but we don’t plan to allow retail investors to trade them all,” Leung said. declaredadding, “We will establish the criteria that would allow retail investors to trade (only) major virtual assets.”
Along with the list of approved tokens, Leung added that the SFC will liaise with the public on crypto retail regulation. The approved list is part of a broader crypto regulatory push that will include the release of a consultation paper before the end of Q1 2023. This regulatory push will also contain new licensing protocols for crypto exchanges and other virtual asset service providers.
For Leung, the goal is investor protection. The chief regulatory officer noted the massive drop in prices occasioned by the current bearish winter. CryptoPotato previously reported that investors in Hong Kong lost $50 million to crypto scams in August 2022.
Asia Could Revive the Crypto Bull Run
The planned regulations for retail participants are the latest positive crypto development to come out of Hong Kong. Stakeholders in the city-state have long declared the goal of making it a crypto hub in the next bull run.
BitMEX co-founder Arthur Hayes noted in October 2022 that the bull market would return when China and Hong Kong “love crypto.” At the time, Hong Kong finance officials were poised to take over the city’s old crypto-friendly stance.
A series of tough crypto measures over the past two years has dampened enthusiasm for the asset class in Hong Kong. This has led to countries like Thailand and Singapore becoming home to several crypto projects and leading the charge for adoption in Asia.
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