Hong Kong’s financial services providers, including local brokers and fund managers, are seeking advice to prepare for new licensing requirements which will allow them to provide services to retail traders, according to a media report.
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- Authorities in Hong Kong may let retail investors with large market capitalization and liquidity trade cryptocurrencies and virtual assets, the report said.
- Currently, trading in the nascent asset class is allowed for professional investors with at least US$1 million in bankable assets.
- Last month, Hong Kong’s Legislative Council passed an amendment to the bill that includes a licensing regime for virtual asset service providers, which will come into effect on June 1.
- In October, Hong Kong announced policy statements on cryptocurrencies and blockchain to reposition itself as a digital assets and investment hub.
- Hong Kong has appointed Julia Leung – who called for stricter crypto regulation – as the chief executive of the Securities and Futures Commission.
- See related article: First Digital Trust says HK, Singapore can join hands on crypto initiatives