Hong Kong authorities plan to introduce restrictions on cryptocurrency exchange trading for unqualified investors
The Hong Kong authorities will tighten the requirements for the work of local cryptocurrency exchanges. This is reported in the official resolution of the Financial Services and Treasury Bureau (FSTB) of Hong Kong. It is assumed that soon all Hong Kong crypto exchanges will be required to obtain a license from the local regulator.
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Moreover, exchanges will be able to provide their services only to professional investors. Hong Kong imposes restrictions on cryptocurrency trading, even despite the fact that there is no unified position on market regulation on the world stage.
Local associations of fintech and the crypto industry have already opposed the regulation. In their opinion, the restrictions may force the exchanges out of Hong Kong. In addition, the restrictions will push investors to unregulated sites, according to representatives of the associations.
Recall, according to the legislation of Hong Kong, an individual can be considered a professional investor if his investment portfolio is at least $1 million.
Hong Kong for seven percent
The terms of entry into force of the restrictions were not disclosed. So far, the FSTB plans to submit the bill for consideration at the upcoming session of the Legislative Council of Hong Kong.
The fact that Hong Kong may limit the cryptocurrency market for ordinary traders, the editorial board of BeInCrypto reported at the beginning of the year. Recall, according to a Citibank survey, there are only seven percent of professional traders in Hong Kong. Thus, access to the cryptocurrency market may be closed to 93% of the population of Hong Kong.
See also: China accelerates testing of Digital Yuan in Hong Kong
It is worth noting that for the first time, Hong Kong’s plans to tighten regulation of the crypto market became known in November 2020. Then it was reported that the local regulator will control the local crypto exchanges, regardless of whether they trade securities or not. Read about why Hong Kong will become the first market for the digital yuan in the BeInCrypto editorial office.
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