The Hong Kong Securities and Futures Commission (SFC) will announce the consultation conclusions on retail participation in cryptocurrency trading during its briefing on Tuesday. Bloomberg predicts that Hong Kong will allow retail investors to trade cryptocurrencies under new regulations in the digital asset industry, and individual investors are expected to trade more tokens, such as BTC and ETH, starting next month with adequate safeguards.
As previously reported, the SFC will hold a media conference on Tuesday regarding virtual asset trading platforms.
In February of this year, the SFC launched a consultation on proposed regulations for virtual asset trading platform operators. According to the new licensing regime, which will come into effect on June 1, 2023, all central virtual asset trading platforms operating in Hong Kong or actively promoting to Hong Kong investors will require an SFC license.
The SFC specifically sought market views on whether licensed platform operators should be allowed to offer services to retail investors. If allowed, what measures should be implemented in addition to a proposed range of investor protections (including suitability and token admission requirements when establishing business relationships with clients).