Hong Kong is making great strides that will make it a vibrant hub for crypto-related activities in the region.
According to a report from Bloomberg citing unnamed sources, the City’s top financial regulator, the Securities and Financial Commission (SFC) is set to permit to relisting of Bitcoin (BTC) and Ethereum (ETH) on exchanges that allow retail traders
Elizabeth Wong, Head Fintech at SFC, first revealed the news that the Hong Kong SFC was considering a divergent regulatory framework for crypto. reported This was published by Blockchain.News this week. Wong says that retail crypto traders will have new allowances. This marks a shift from the previous stance, which was established in 2018, and saw only institutional traders trade the new asset class.
It is not yet clear when the new regulatory frameworks will be announced. However, there are many rumors that SFC will announce its plans at a fintech conference, which is scheduled to begin Monday. Hong Kong is no longer the preferred destination for veterans and mainstream crypto companies.
The city’s new move is a way to reverse its previous stance and create an environment that allows it to compete with other countries, including Singapore. With the speculation about the new crypto regime growing stronger, sentiments from stakeholders is still largely skeptical as many believe China’s influence might still be a drawback for the firm.
“The kind of conversations I’ve had was that people still fear there’ll be a very strict licensing regime,” said Leonhard Weese, co-founder of the Bitcoin Association of Hong Kong. “Even if they’re able to deal directly with retail users, they’re still not going to be as attractive or as competitive as overseas platforms.”
The UK Government is rapidly adopting the crypto ecosystem. Regulating the industry has been a remarkable step forward. The SFC, as well as other promising countries, are not slowing down on this trend. They are willing to do everything possible to provide an enabling environment to all actors.