Hong Kong Aims To Become Financial Hub By Legalizing Crypto Trading

Hong Kong Aims To Become Financial Hub By Legalizing Crypto Trading.

In a bid to reestablish themself as a financial hub, Bloomberg reported on Thursday that Hong Kong intends to legalize bitcoin dan crypto retail trading.

According to the article, which cited persons with knowledge of the situation, cryptocurrency platforms will need to submit an application for a license in order to provide retail trading.

Hong Kong To Legalize Crypto Trading

The city seeks to restore its standing as a major financial center on a worldwide scale. In contrast, crypto is not allowed in mainland China.

As part of the “One Country, Two Systems” framework, which governs Hong Kong, it has independent financial and legal systems from the Chinese mainland.

Read More: Monetary Authority of Singapore (MAS) Proposes Strict Measures On Crypto Trading 

According to Bloomberg, the city plans to start in March by introducing a license regime that will be required of any interested crypto businesses. Anonymous sources claim that these platforms are permitted to provide retail trading to the general public under the terms of the license.

The city’s cryptocurrency initiatives currently lack specifics. However, according to these sources, regulators will permit the trade of well-known coins like Ethereum and Bitcoin, after the administration has finished its public consultation on the specific matter.

The government will undoubtedly impose regulations for listing cryptocurrency assets on exchanges, among other things. According to sources, the criteria would take into account elements like market value, liquidity, and connections to independent crypto indexes. Authorities may be prompted by the idea of a crypto hub to make the standards flexible in the belief that it will attract the right kind of attention.

Prior to being obliged to prohibit institutional access to clients with a minimum of HK$8 million ($1 million) in their portfolios, Hong Kong was a pioneer in the Asian market for cryptocurrencies.

Read More: Australia Federal Budget Emphasizes BTC Will Continue to be Treated as a Digital Assets

Despite the fact that Hong Kong is a Special Administrative Region of China and is permitted to keep its economic and financial independence, there are concerns that China’s near-total hostility towards cryptocurrencies may become an issue. Despite opposition from the community, China prohibited all cryptocurrency-related operations last year and has continued to do so.

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