Hong Kong to Present a Set of Approved Cryptocurrency Tokens for Retail Trading

Leung emphasized the thousands of products available on different digital asset platforms. The SFC chief did note that they only want to permit regular investors to trade in some of them. The SFC will establish requirements restricting ordinary traders from exclusively trading in important virtual assets.

Leung stated:

“Some virtual assets platforms have over 2,000 products, but we do not plan to allow retail investors to trade in all of them.”

Leung added that only virtual assets with deep liquidity would be included in the list but did not specify them or give any examples.

Leung stated only “highly liquid” assets would be permitted for retail trading when asked if cryptocurrencies like Bitcoin or Ethereum might be included in the regulator’s inaugural list of virtual assets.

Despite the restrictions imposed on retail investors, Leung explained that Hong Kong is being positioned as a virtual asset hub. Leung stated that the goal is to have a proper regulatory framework in place to protect all investors’ interests and promote Hong Kong as a virtual asset hub.

Leung added:

“We aim to have a proper regulatory framework to safeguard the interest of all investors and to enhance Hong Kong as a virtual asset hub.”

Hong Kong’s Legislative Council approved the revised Anti-Money Laundering and Counter-Terrorist Financing Act last month, placing new licensing requirements on companies that provide services for virtual assets beginning in June under the control of the SFC.

Platforms must request a license from the SFC in order to operate, or they risk being shut down within nine months of the law’s implementation.

If you would like to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, and Instagram.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”