- Hong Kong says its stance on cryptocurrency differs from China’s.
- Hong Kong considers enabling direct selling to retail investors from crypto exchanges.
- This move is in order to attract fintech businesses leaving Hong Kong.
Hong Kong has announced that its official stance on cryptocurrency differs from that of Mainland China. Reassuring web3.0 businesses in the city, Hong Kong now considers enabling direct selling services to retail investors for all crypto exchanges and intermediaries.
During a panel discussion hosted by InvestHK, the director of licensing and head of the fintech unit of the Securities and Futures Commission (SFC), Elizabeth Wong stated,
the ‘one country, two systems’ principle forms the basic foundation of Hong Kong’s financial markets, and the fact that the city can introduce its own bill to regulate cryptocurrencies shows just how separate Hong Kong is from the mainland
The introduction of retail participation allowing “direct investment into virtual assets,” would account for a significant change in the SFC’s standpoint for the last four years, added Wong. SFC’s present stance limited cryptocurrency trading on centralized exchanges to professional investors.
Moreover, its definition of a professional investor is a user with HK$8 million or USD $1 million portfolio. Industry players have already stated that the professionals-only approach is the key reason driving crypto business away from the city.
Therefore, these industry changes come in an effort to attract FinTech companies that are leaving while Hong Kong pursues to regain its reputation as a cryptocurrency hub.
Moreover, Hong Kong officials will reveal a new cryptocurrency policy during the Fintech Week event due next week. Event organizers said that the new policy will share a “vision of developing Hong Kong into an international virtual assets centre,” making its outlook on virtual assets transparent to global markets.
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