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By launching a number of legal initiatives related to the cryptocurrency industry, Hong Kong is taking steps to regain its position as a global hub for cryptocurrency.
Hong Kong, a Chinese city and special administrative region, is willing to differentiate its approach to crypto regulation from mainland China’s blanket crypto ban.
According to Elizabeth Wong, head of the fintech unit at the Securities and Futures Commission (SFC), the government of Hong Kong is considering introducing its own bill to regulate cryptocurrency in a manner independent of China.
The South China Morning Post reported on October 17 that Wong stated that one of the SFC’s initiatives is to allow retail investors to “directly invest into virtual assets” during a panel held by InvestHK.
Wong noted that such an initiative would represent a significant shift from the SFC’s stance over the past four years, which limited professional investors to crypto trading on centralized exchanges.
Individuals with a portfolio worth at least $1 million, or roughly 7% of the city’s population as of September 2021, are eligible investors. Wong emphasized that the cryptocurrency industry has become more compliant over the past four years, implying that the time has come to alter the city’s position on crypto.
They think that this may be a good time to really think about whether we will continue with this professional investor-only requirement, the company stated.
The official from the SFC also mentioned a few other legal initiatives aimed at expanding Hong Kong’s crypto ecosystem, such as a January policy that allows service providers to sell certain crypto-related derivatives.
Wong mentioned that the regulator has also been looking into whether or not to let retail investors invest in crypto-related exchange-traded funds. The most recent information comes as Hong Kong launches a $3.8 billion fund on Oct. 19 to re-enter the city after a massive talent exodus caused by strict lockdowns and a tense political climate.
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A bill to propose establishing a regulatory framework for virtual asset service providers has been introduced by the local government, according to an official statement from the government of the Hong Kong special administrative region.
In addition, the city’s authorities intend to transform Hong Kong into an “international virtual assets center” by embracing novel technologies like metaverse and nonfungible tokens.
Some reports claim that Hong Kong has succeeded in adopting cryptocurrencies thus far.
In a study that was published in July 2022 by Forex Suggest, a number of factors, including crypto ATM installations, pro-crypto regulations, and startup culture, determined that Hong Kong was the nation that was best prepared for the widespread adoption of cryptocurrencies.
© Copyright 2022. The Coin Republic
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