New Crypto Rules May Be Implemented By Hong Kong

Trading may be open to retail investors

Hong Kong Crypto

Hong Kong is currently making plans that would allow retail investors in the region to be able to join the rest of the world in trading crypto. The new rules are being mulled over as the nation seeks to become a crypto center just as it was a financial center before. The program is set to launch in March 2023 and would require licensing for crypto platforms. Currently, there is no complete timetable as things have not been finalized and public consultation is still needed.

Hong Kong is trying to regain its crypto footing after losing so much ground during Covid, political issues, and regulations, all of which stole the thunder from the crypto sector in the area. Elizabeth Wong is the head of the fintech unit at Hong Kong’s Securities and Futures Commission (SFC) and has teased the initiative.  Mrs. Wong alluded to the fact that the government was considering its own bill for crypto regulation which would allow individuals to “directly invest in virtual assets”

Hong Kong does have a history of being a crypto capital with companies like FTX and Binance initially making the nation the location of their home offices. A voluntary licensing regime in 2018 limited crypto platforms only to clients with at least $1 million, this turned a lot of crypto platforms away from the nation.

Xi Jinping has stated crypto is revolutionary but has not fully accepted it

Mainland Influence

China has not been quiet about crypto or how the government feels about the technology. At times it seems as if the Chinese government restricts and opens crypto only when it benefits the government as a whole but not the populace of the country. Some parts of crypto and web3 are outlawed and some are not, it would seem most parts of crypto that are beneficial to the individual have been made to face harsh regulations but when the technology can benefit the country or government then regulations are loosened. 

With the new idea of Hong Kong to allow individuals to invest in crypto one can only wonder how much influence the Chinese government will have on this new initiative. The success of the Hong Kong initiative depends on the access that is given to all customers, including those in mainland China.

China has just recently announced new initiatives for moving forward, in his speech given at the Chinese Communist Party Congress, Xi addressed a lot of issues but did not speak on crypto though he has been known to call it a breakthrough technology before.

Crypto has had a rough go of things in China, the new regulations in Hong Kong are being made in order to bring back the glory days of crypto in the region, as long as the mainland government is serious about building the crypto space without stifling regulations things may turn out better for crypto in the region.

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