When the brand new licensing program that’s scheduled to take off in June arrives, retail merchants in Hong Kong will likely be restricted to “highly-liquid” digital property, in response to the brand new CEO of Hong Kong’s Securities and Futures Fee (SFC), Julia Leung Fung-yee.

On the latest Asia Monetary Discussion board, Leung reportedly pointed out that many digital asset platforms have hundreds of merchandise. Nonetheless, the SFC government highlighted that they aren’t planning to “permit retail traders to commerce in all of them.” As a substitute, the SFC will arrange a standards that permit retail merchants to solely commerce main digital property.

Whereas the SFC government didn’t present extra particulars as to which property will likely be accessible for buying and selling, Leung talked about that these will likely be property with “deep liquidity.” When requested about Bitcoin (BTC) or Ether (ETH), the SFC government didn’t reply however reiterated that “extremely liquid” property will likely be allowed.

Regardless of the restrictions that will likely be positioned on retail traders, Leung highlighted that they’re transferring to place Hong Kong as a digital asset hub. “We intention to have a correct regulatory framework to safeguard the curiosity of all traders and to boost Hong Kong as a digital asset hub,” she mentioned.

The CEO additionally famous that with correct regulation, points just like the collapse of the FTX trade may also be prevented in Hong Kong.

In a latest occasion, Hong Kong’s monetary secretary Paul Chan mentioned that many crypto corporations are requesting to arrange store in Hong Kong. The official highlighted that the federal government is doing its greatest to supply acceptable supervision to the crypto area to appreciate the potential of Web3 expertise.

Hong Kong brokers line up for SFC approval forward of latest digital asset buying and selling laws

Digital property have just lately been a scorching subject within the particular administrative area. On Jan. 5, a Hong Kong official floated the concept of turning the Hong Kong digital greenback right into a stablecoin. Wu Jiezhuang, a member of the legislative council, believes that this might handle dangers linked to digital property in Web3.