Elizabeth Wong, who is the Director of Licensing and Head of the Fintech wing of Hong Kong’s Securities and Futures Commission (SFC), recently had a talk about regulations in the crypto domain concerning retail investors. This was a part of the discussion that was held by InvestHK on Monday.
Hong Kong Retail Investors Regulation
Wong explained that the regulatory framework in Hong Kong for crypto is certainly distinct from in mainland China. She stressed the fact that “how separate Hong Kong is from the mainland.” She then went on to emphasize that Hong Kong could introduce its native crypto regulation bill. This statement indeed supported the previous statement mentioned here.
The Director then confirmed the fact that SFC would now consider and allow Hong Kong retail investors to “directly invest into virtual assets.” However, in the past four years, the regulating body talked about here has restricted crypto trading on centralized exchanges only to professional investors, which now is not mandatory. These professionals currently hold liquid assets worth about HK$8 million (US$1 million).
The SFC Director even went on to state that the crypto space has become more compliant at least in their jurisdiction. She went on to explain this by saying:
“We’ve had four years of experience in regulating this industry. We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement.”
This latest crypto news is of utmost importance as China has completely deterred itself from promoting crypto-related activities whereas Hong Kong has taken a step forward to support the domain. The new crypto regulation that will support all Hong Kong retail investors might be a relief for every crypto enthusiast there who earlier would not have been able to fulfil their wish of trading crypto.