Hong Kong’s Securities and Futures Fee (SFC) Chair Julia Leung mentioned the fee will enable retail buyers to commerce solely extremely liquid crypto property, South China Morning Submit reported.
Earlier on Jan. 9, Hong Kong’s Monetary Secretary Paul Chan introduced that from June 2023, the federal government will begin issuing licenses to permit crypto exchanges to supply buying and selling providers to retail buyers.
Nonetheless, the newly appointed SFC Chair Julia Leung mentioned that buying and selling in crypto property will probably be restricted to extremely liquid merchandise.
Leung famous that a number of crypto exchanges have over 2,000 property listed, however, the SFC is not going to enable retail buyers to commerce in all of them. Leung mentioned:
“We are going to set the factors that may enable retail buyers to solely commerce in main digital property.”
The SFC Chair added that solely property with deep liquidity will probably be on the buying and selling checklist. It will likely be dangerous for retail buyers to commerce property with low liquidity as they’re extra vulnerable to market manipulation.
She mentioned the regulator will work to make sure that authorised exchanges have adequate liquidity to deal with unstable market circumstances.
Moreover, the June 2023 regulatory guideline would require crypto exchanges to have threat administration, inner controls, and correct custodian preparations, with a purpose to safeguard their prospects’ property.
Moreover, Leung mentioned the SFC will work with the Hong Kong Inventory Alternate to permit listed exchanges to reveal their local weather dangers.