Hong Kong is all set to make a splash in the world of crypto! In just two days, the city’s Securities and Futures Commission (SFC) is launching new crypto regulations, ushering in a transformative era for the local crypto landscape. The forthcoming regulations are designed with the protection of retail investors in mind and promise stricter rules for digital asset companies.
Here’s What You Need to Know:
1️⃣ The SFC will require all trading platforms and exchanges to apply for a licence. Those who fail to comply risk facing hefty fines and potential jail terms.
2️⃣ Trading platforms are tasked with conducting client checks to ensure that they do not accept retail traders from countries where crypto trading is banned, such as China.
3️⃣ Advertising related to unlicensed platforms will be deemed an offence. This regulation extends to social media influencers who promote such services.
Potential Tokens for Trading
The SFC has outlined potential criteria for tokens to be eligible for retail trading, which includes a minimum of 12 months of regulatory compliance with no criminal allegations against the projects. Potential tokens that meet these criteria include Bitcoin, Ethereum, Litecoin, Polkadot, Bitcoin Cash, Solana, Cardano, Avalanche, Polygon, and Chainlink. Please note that this is only a potential list, and the final shortlist of tokens is yet to be announced by the SFC.
These new regulations are likely to attract more firms to set up offices in Hong Kong, solidifying its position as a burgeoning crypto hub. Nevertheless, the SFC remains committed to ensuring investor protection and is actively seeking public views about specific guardrails for retail trading.
Exciting times lie ahead for the crypto market!
