Hong Kong’s SFC Takes Retail Crypto Investors Into Consideration

The Hong Kong Securities and Futures Commission (SFC) is already pondering on the need to allow retail investors to trade crypto as against its only professional investor’s policy that has been in place since 2019. 

Elizabeth Wong, Director of Licensing and Head of the Fintech Unit of SFC Hong Kong, claimed that since the Hong Kong blockchain market has been more compliant over the past four years, private investors should be permitted to trade digital assets. She continued by saying that as they were distinct, the crypto ban in mainland China’s cryptocurrency laws should not be applied to Hong Kong’s.

The Hong Kong government has been looking for means to bring back blockchain investors that ran away from the country due to strict policies that were put in place to regulate the virtual economy. 

This new consideration seems to be a good idea because currently only professional investors with at least $1 million (HK$8 million) are allowed to trade in exchange-traded funds (ETFs). OSL Digital Securities Limited is presently the only licensed crypto platform that operates professionally in Hong Kong.

The SFC will later this year ask for the public’s feedback on the implementation of the policy to allow private investors to trade in cryptocurrencies. Wong also made a hint that the SFC will soon draft a compulsory licensing regulation for crypto trading networks that will be written into legislation.

Hong Kong is  Digitally Ready

The Hong Kong government is quite open to the blockchain industry and does not impose taxes on investors or businesses that make money from cryptocurrency trading. It is worth mentioning that Hong Kong took the first position as a digitally ready economy according to a readiness report.

After a new approval from SFC, Hashkey Capital Investments are now able to manage a digital asset portfolio. The firm is now able to handle funds that have 100% of their portfolios invested in cryptocurrencies in accordance with local regulatory regulations.