The Securities and Futures Fee (SFC) of Hong Kong has known as on the general public to supply suggestions on its proposed regulation for crypto exchanges searching for to serve retail traders in Hong Kong.
The Hong Kong authorities obtained a number of commendations from the crypto group following its plan to legalize crypto buying and selling for retail traders from June 1.
Nevertheless, to make sure a secure funding surroundings, the SFC Chair Julia Leung stated that retail traders would solely be allowed to commerce extremely liquid crypto belongings.
Exchanges to acquire a license from the SFC
In gentle of Hong Kong’s plan to legalize crypto buying and selling, the SFC introduced on Feb. 20 that it had launched a session paper for the general public to supply suggestions on the fee’s regulatory plan for crypto exchanges.
Beneath the SFC’s necessities, all crypto exchanges providing buying and selling companies in Hong Kong should be licensed by the SFC.
The SFC stated it’s searching for suggestions on whether or not to permit licensed exchanges to serve retail traders and the measures to be applied to make sure ample investor safety.
SFC Chair Julia Leung stated the proposed necessities embody strong measures to guard traders — following the ‘similar enterprise, similar dangers, similar guidelines’ rules.
The fee has invited all crypto market individuals to supply suggestions on its proposed regulatory necessities on or earlier than March 31.
As well as, the SFC has urged crypto exchanges prepared to proceed working in Hong Kong to duly apply for a license, whereas those that don’t intend to use for a license ought to shut down their operations.
Huobi strikes to acquire Hong Kong license
Tron founder and Huobi adviser Justin Solar announced on Feb. 20 that Huobi can be launched in Hong Kong because it seeks to acquire a crypto buying and selling license from the SFC.
“With the brand new license, Huobi will be capable of increase its companies and choices to prospects in Hong Kong, offering a wider vary of crypto buying and selling and funding choices,” Solar stated.
The brand new exchange- Huobi Hong Kong- can be centered on offering buying and selling companies for institutional traders and high-net-worth people.