Hong Kong plans to launch several crypto-related initiatives, breaking away from China's crypto regulations.
Hong Kong, a city and administrative region of China, is reportedly planning to launch a number of legal initiatives considering the crypto industry.
According to the news report written by the South China Morning Post, Hong Kong’s government is considering launching its own crypto bill, breaking away from China’s crypto regulations.
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The news was revealed by the head of the fintech unit at the Securities and Futures Commission (SFC), Elizabeth Wong, during the panel hosted by InvestHK.
The SFC fintech unit leader highlighted that one of the initiatives would allow retail investors to “directly invest into virtual assets.”
It is worth noting that for the past four years, crypto trading was allowed only for professional investors. Citizens eligible to trade on centralized exchanges must have a portfolio worth at least $1 million. In September 2021, it only made up 7% of the city’s population. In the panel, Elizabeth Wong noted:
We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement.
It is reported that Hong Kong is looking to bring other crypto-related initiatives to action. During her talk, Wong emphasized that Hong Kong is working on launching a policy allowing crypto service providers to sell crypto derivatives. Moreover, SFC also considers letting retail investors invest in crypto exchange-traded funds.
A press release shared by the Government of the Hong Kong Special Administrative Region confirmed Elizabeth Wong’s claims. The press release highlighted that the government has already presented a bill aiming to define the regulatory framework for virtual asset service providers.
Moreover, in its attempt to become an “international virtual assets center,” Hong Kong is looking to adopt Metaverse and non-fungible tokens (NFTs).
It is worth noting that in September 2021, the People’s Bank of China banned cryptocurrency transactions, claiming that it enables financial crimes and poses a risk to China’s financial system.
