The new licensing program, set up to remove in June, will limit retail traders in Hong Kong to “highly-liquid” digital possessions, according to the brand-new CEO of Hong Kong’s Securities and Futures Commission (SFC), Julia Leung Fung-yee.
At the current Asia Financial Forum, Leung pointed out that lots of digital possession platforms have countless products. Nevertheless, the SFC executive highlighted that they are not preparing to “permit retail financiers to sell all of them.” Rather, the SFC will set up requirements that allow retail traders to just trade major virtual assets.
Regardless of the constraints that will be placed on retail investors, Leung highlighted that they are relocating to place Hong Kong as a virtual possession center. “We intend to have an appropriate regulative framework to protect the interest of all financiers and to boost Hong Kong as a virtual possession center,” she said.
The CEO likewise noted that appropriate regulation could prevent problems, such as the collapse of the FTX exchange, from happening in Hong Kong.
In a recent event, Hong Kong’s monetary secretary Paul Chan said that numerous crypto companies are requesting to set up shop in Hong Kong. The main highlighted that the government is doing its best to offer proper supervision to the crypto area and understand the capacity of Web3 technology.Related: Hong Kong brokers line up for SFC approval aheadof brand-new virtual asset trading legislation Digital properties have recently been a hot subject in the special administrative
area. On Jan. 5, a Hong Kong main drifted the idea of turning the Hong Kong digital dollar into a stablecoin. Wu Jiezhuang, a legislative council member, thinks this might attend to dangers linked to digital assets in Web3.
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