Besides its political differences and leanings from China, Hong Kong is also seeking to create a different path for itself when it comes to its administration and regulation of digital currencies and the emerging Web3 world.
Hong Kong, the special administrative city of China is pushing for new reforms that will position it as one of the most forward-thinking crypto-positive regions in the world. In one of its latest moves as affirmed by Elizabeth Wong, head of the fintech unit at the Securities and Futures Commission (SFC), Hong Kong is set to taper down on its rules, allowing only institutional investors to gain access to crypto trading.
According to Wong, retail investors will now be allowed to trade crypto as the ecosystem has remained relatively compliant over the past four years.
“We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement,” Wong said during a panel held recently by InvestHK, per a report from the South China Morning Post (SCMP).
Prior to this time, Hong Kong only permitted institutional investors to trade crypto from Centralized Exchanges. By its definition, only holders who have at least $1 million were allowed to conduct the trades, leaving just about 7% of the Hong Kong population to gain easy access to the nascent crypto products.
Should the tide change as insinuated by Wong, the growth of crypto in Hong Kong can then go mainstream. Besides the spot trading options available to crypto investors, Elizabeth Wong also affirmed that the SFC is working on avenues whereby more eligible investors can gain access to certain derivatives products.
Per its disposition at the moment, Hong Kong is doing all it can to attract as many businesses and talents by changing its old strategies and policies across the board. To put its money where its mouth is, the government launched a $3.8 billion fund to attract businesses, most of whom are having cold feet with the company’s stance against COVID-19 and other economic battles.
Hong Kong Carving Out a Different Path From China
Besides its political differences and leanings from China, Hong Kong is also seeking to create a different path for itself when it comes to its administration and regulation of digital currencies and the emerging Web3 world.
Unlike China which has maintained a hardcore stance over crypto and has banned every form of activity from the country, Hong Kong is looking for ways to ensure it legalizes the nascent asset class.
The country is already working in this light and its policies thus far have earned it a tag as the most prepared country for the broad adoption of digital currencies according to a research study published by Forex Suggest published in July 2022. In all of its plans, Hong Kong is ready to change its legal leanings, expand its reforms and chart a path that will make it a global hub for crypto-related innovations.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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