In response to the growing demand for cryptocurrencies, regulatory authorities worldwide have been proactively implementing measures. Recognizing the need to embrace digital assets cautiously while staying ahead, Hong Kong has made a significant move.
The Hong Kong Securities and Futures Commission (SFC) recently announced that retail investors will be allowed to access cryptocurrency exchanges, although certain conditions and limitations will apply.
The SFC’s decision highlights the importance of utilizing exclusively licensed cryptocurrency exchanges, as emphasized in their tweet. On May 23, an announcement confirmed that individual investors will be able to buy and sell major tokens like Bitcoin (BTC) and Ethereum (ETH) starting from June 1.
To ensure a safe and secure environment, the regulator will introduce comprehensive guidelines for crypto firms to follow. These guidelines will cover various aspects, including asset custody safety requirements, cybersecurity standards, and client asset segregation, among other considerations. The objective is to establish a framework that protects and secures crypto assets, mitigates cybersecurity risks, and safeguards the interests of clients. Compliance with these guidelines will be mandatory for crypto firms operating within the regulatory jurisdiction.
Hong Kong’s two licensed crypto exchanges, HasKey Pro and OSL, have already partnered with local securities brokers to facilitate crypto asset trading for professional investors.
“Providing clear regulatory expectations is the key to fostering responsible development. Hong Kong’s comprehensive virtual assets regulatory framework follows the principle of ‘same business, same risks, same rules’ and aims to provide robust investor protection and manage key risks. This will enable the industry to develop sustainably and support innovation.” – Julia Leung, the SFC’s CEO