Hong Kong regulators have announced the creation of a crypto hub in the region, allowing retail customers to buy Bitcoin (BTC) and other authorized cryptos from June 1, 2023.
The Hong Kong Securities and Futures Commission (SFC) has issued a document confirming acceptance of the proposal to allow licensed trading platforms to serve retail investors.
Before being able to offer Bitcoin and crypto buying and trading services to retail investors in Hong Kong, crypto-exchange platforms will have to register with local regulators and obtain a crypto license.
Huobi, OKX and other major cryptocurrency exchange platforms are in the running to be licensed in China’s Special Administrative Region.
However, some cryptocurrencies, notably stablecoins, will not be permitted for retail investors.
Julia Leung, CEO of the SFC, said:
“Providing clear regulatory expectations is essential to foster responsible development. Hong Kong’s comprehensive regulatory framework for virtual assets follows the principle of ‘same company, same risks, same rules’ and aims to provide strong investor protection while managing key risks. This will enable the industry to grow sustainably and support innovation.”
Many observers are eagerly awaiting the launch of cryptocurrency trading in Hong Kong, hoping that this new Asian crypto hub could boost the price of Bitcoin and the crypto-market.
Cameron Winklevoss, CEO of crypto exchange Gemini, said on Twitter that he believes the next bull run will be initiated by Asia. He believes it will be a reminder that cryptocurrency is a global asset class and that the West, particularly the US, has only two options: embrace it or be left behind.
We’ll have to wait a few weeks or months to see whether Hong Kong’s crypto initiative will help revive Bitcoin’s price and the cryptocurrency market to the upside.
