Ordinary investors will soon be able to trade digital assets like Bitcoin and Ethereum, according to plans made public by Hong Kong.
This is a big step in the direction of Hong Kong's goal of developing into a bitcoin centre. By June 1, 2023, it is hoped that retail investors will be able to trade cryptocurrencies. The consultation session will end on March 31.
On exchanges governed by the Securities and Futures Commission, individual investors will be permitted to trade cryptocurrencies (SFC). Bitcoin and Ethereum are two digital assets that are anticipated to be listed by Hong Kong exchanges, an SFC spokesman said at a briefing.
In order to prevent incidents like FTX in 2022, Hong Kong is also developing an essential regulatory framework to draw businesses and safeguard investors. The government has given mutual funds permission to trade portfolios in the Bitcoin and Ethereum futures offered by CME Group, and it recently auctioned its first digital green bond.
The actions made by Hong Kong contrast sharply with those of the United States, which has regularly issued directives to repress the activities of crypto organizations. If Beijing reduces its domestic crypto prohibitions, the recent actions made by Hong Kong may also open the door for investment on the Chinese mainland.
The co-founder of the cryptocurrency exchange Gemini, Cameron Winklevoss, recently predicted on Twitter that Asia will be the source of the next surge in bull market momentum. Brian Armstrong, the CEO of Coinbase Global, shares this viewpoint and notes that significant moves done by US regulators, particularly the SEC, may further encourage crypto firms to migrate. offshore, with Hong Kong being one of the nations that is now setting the standard for crypto assets.