Crypto News

Hong Kong Fintech Chair Permitted Crypto Retail Trade – A New Era in Crypto Transaction in Hong Kong

Fintech Association Perspective on the New Change –

The Hong Kong’s Fintech Association chairman offered a policy statement suggesting, that retail investors should have more access to digital assets. It seemed to point the city in a more crypto-trading-friendly direction. As it involves Crypto trading for the general public, which was earlier proposed limiting crypto trade to professional investors,

“Now Hong Kong is back inside of the game, Neil Tan, CEO of blockchain startup Neptune Digital, stated in The Daily Forkast in an interview. “And that retail piece does play a huge piece. If you look at the exchanges and market capitalization, a lot of it drives from the retail side.”

Neil Tan mentioned that the statement by the Financial Services and Treasury Bureau acknowledged the importance of retail investors in the Crypto Economy and would help clarify regulatory issues similar to other countries’ recent frameworks.

Statement of the Released Policy  –

In the policy statement released Monday at Hong Kong FinTech Week, the government’s main financial agency, the Financial Services and Treasury Bureau (FSTB), indicated it would conduct a public consultation on how retail investors might attain a “suitable degree of access to virtual assets” to licensed exchanges. The FSTB said it was reconsidering its stance on virtual asset exchange-traded funds (ETF) and tokenized securities, and that it was “ready to engage” with global virtual asset service providers and invite them to the city.

Earlier this year, as part of a move to tighten anti-money laundering regulations, the Hong Kong government moved to license virtual asset service providers (VASP) via a legislative proposal that passed its consultation period. The city’s main securities regulatory group, the Securities and Futures Commission (SFC), would be provided with “necessary intervention powers” to impose restrictions or even prohibitions on companies providing crypto services.

Institutional Interest in the New Policy –

Tan also noted the desire for more institutions “to have more coverage into digital assets,” and he also praised the timing of the policy statement’s release.

“You’re introducing it inside the winter, so there’s little risk in terms of downside,” he further said. “There’s a lot more upside. Everybody else has shown their cards such as Dubai and also Singapore in terms of what the regulatory framework will look like in these jurisdictions.”

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