Hong Kong has introduced new cryptocurrency trading regulations, and retail investors can now trade cryptocurrencies of their choice after the new regulations come into effect.
Original title: "Hong Kong Approves Select Crypto: Which Tokens Made The Cut?"
Written by: David Marsanic, Stefan Trapp, Ciaran Lawler
Compilation: Deep Tide TechFlow
Hong Kong has introduced new regulations for cryptocurrency trading, with only a handful of currencies meeting the standards. Among them, Bitcoin, Ethereum and Litecoin are among the currencies approved for trading.
Hong Kong has taken a different stance amid a crackdown on cryptocurrencies elsewhere in Asia. Retail investors will now be able to trade cryptocurrencies of their choice after the new regulations come into effect.
New regulations from the Securities and Futures Commission (SFC) in Hong Kong will take effect on June 1, 2023, allowing retail investors to trade certain cryptocurrencies. However, these currencies must meet certain strict criteria in order to be eligible for trading.
So far, only ten cryptocurrencies have met the criteria, including Bitcoin, Ethereum and several popular altcoins.
Hong Kong Cryptocurrency Trading Standards
In order to be allowed to be traded by retail investors, cryptocurrency tokens must meet strict regulations of the SFC. First, tokens must have at least 12 months of regulatory compliance. In the interim, the projects to which these tokens belong should not be subject to any criminal charges.
On the other hand, these tokens must be on investable indices of at least two major independent investment firms. Tokens that do not meet these requirements will not be eligible for trading.
Currently compliant tokens include: Bitcoin, Ethereum, Litecoin, Polkadot, Bitcoin Cash, Solana, Cardano, Avalanche, Polygon, and Chainlink.
Why Hong Kong does not allow stablecoins
Interestingly, the SFC currently has no plans to allow stablecoins, citing the ongoing uncertainty surrounding them.
This new initiative marks an important step in the development of cryptocurrencies in Hong Kong. Through this selective approach, Hong Kong hopes to strengthen its position in the global cryptocurrency market while maintaining strict regulatory standards.
on the other hand
Strict criteria for token selection means many cryptocurrencies will be inaccessible to retail investors in Hong Kong. Given the increasing popularity of stablecoins, excluding stablecoins from the approved list may be a missed opportunity.
Why is this important
For retail investors in Hong Kong, the development presents an opportunity to enter the cryptocurrency market. Increased adoption will also have a positive impact on the entire cryptocurrency market.
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Hong Kong Approves Some Cryptocurrency Trading: Which Coins Are Included?
Original title: "Hong Kong Approves Select Crypto: Which Tokens Made The Cut?"
Written by: David Marsanic, Stefan Trapp, Ciaran Lawler
Compilation: Deep Tide TechFlow
Hong Kong has introduced new regulations for cryptocurrency trading, with only a handful of currencies meeting the standards. Among them, Bitcoin, Ethereum and Litecoin are among the currencies approved for trading.
Hong Kong has taken a different stance amid a crackdown on cryptocurrencies elsewhere in Asia. Retail investors will now be able to trade cryptocurrencies of their choice after the new regulations come into effect.
New regulations from the Securities and Futures Commission (SFC) in Hong Kong will take effect on June 1, 2023, allowing retail investors to trade certain cryptocurrencies. However, these currencies must meet certain strict criteria in order to be eligible for trading.
So far, only ten cryptocurrencies have met the criteria, including Bitcoin, Ethereum and several popular altcoins.
Hong Kong Cryptocurrency Trading Standards
In order to be allowed to be traded by retail investors, cryptocurrency tokens must meet strict regulations of the SFC. First, tokens must have at least 12 months of regulatory compliance. In the interim, the projects to which these tokens belong should not be subject to any criminal charges.
On the other hand, these tokens must be on investable indices of at least two major independent investment firms. Tokens that do not meet these requirements will not be eligible for trading.
Currently compliant tokens include: Bitcoin, Ethereum, Litecoin, Polkadot, Bitcoin Cash, Solana, Cardano, Avalanche, Polygon, and Chainlink.
Why Hong Kong does not allow stablecoins
Interestingly, the SFC currently has no plans to allow stablecoins, citing the ongoing uncertainty surrounding them.
This new initiative marks an important step in the development of cryptocurrencies in Hong Kong. Through this selective approach, Hong Kong hopes to strengthen its position in the global cryptocurrency market while maintaining strict regulatory standards.
on the other hand
Strict criteria for token selection means many cryptocurrencies will be inaccessible to retail investors in Hong Kong. Given the increasing popularity of stablecoins, excluding stablecoins from the approved list may be a missed opportunity.
Why is this important
For retail investors in Hong Kong, the development presents an opportunity to enter the cryptocurrency market. Increased adoption will also have a positive impact on the entire cryptocurrency market.